A price war in the US over fees charged by fund managers will quite literally reach rock bottom on Friday when investors will be able to buy into two new index funds with no fees.
Boston-based Fidelity Investments said that the two new mutual funds, which will invest in US and global equities, will have no management fees, no minimum investment threshold and will have an expense ratio of zero.
The $2.5 trillion manager also said it would slash fees on its existing index mutual funds by an average of 35%.
President of Fidelity Investments’ personal investing business Kathleen Murphy said: "We are charting a new course in index investing that benefits investors of all ages – from millennials to baby boomers – and at all affluence levels and stages of their lives.
“The ground-breaking zero expense ratio index funds combined with industry-leading zero minimums for account opening, zero investment minimums, zero account fees, zero domestic money movement fees and significantly reduced index pricing are unmatched by any other financial services company.”
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