How to Dispute Unfair Mutual Fund Fees

Fight and Waive Fees How to Dispute Unfair Mutual Fund Fees

How to Dispute Unfair Mutual Fund Fees

A mutual fund is a company that pools together money from several investors and invests the money in stocks, bonds, or other short-term debt.  This combination of holdings is known as a customer's portfolio.  The shares purchased by investors represent their part-ownership in the fund, and the dividends received by the investor are a result of the income that the fund generates.

There are fees involved with the purchase and the management of the fund portfolio, and sometimes these fees may be hidden or unexpected.  DoNotPay can provide an easy and quick way to fight to waive or minimize your mutual fund fees in only three steps.  

What Are the Types of Fees Associated With Mutual Funds?

When you purchase mutual funds, you can usually expect to pay two kinds of mutual fund fees: annual operating fees and shareholder fees.

Annual Operating FeesThese fees pay for the cost of the portfolio managers and accountants.  They also cover any legal fees, marketing expenses, and any costs to keep the lights on and pay a firm's expenses.  It is typically based on a percentage of the fund's net average assets.
Shareholder FeesBasically, this covers commissions paid for buying and selling your shares.  You may see these listed as account, redemption, exchange, or purchase fees. They are most often computed on a one-time cost basis that occurs during buying or selling.

Your fees should be itemized for you in a mutual fund's prospectus, a legal document that must be filed with the SEC.

How Can I Avoid or Appeal Mutual Fund Fees?

Be informed.  Ask questions.  Your portfolio manager should be able to explain the fees you are being charged, what those fees support, and how significant they will be to your investment.  If you are being charged fees that have not been explained, are exorbitant in cost, or are repetitive, you can appeal the charges.  You can either try to appeal the fees yourself or use DoNotPay's Fight and Waive Fees product to help you appeal them.

How Can I Appeal Mutual Fund Fees on My Own?

If you have any investments through your workplace, chances are you have mutual fund investments.  You can appeal some fees with your money manager, and sometimes you can get some of the fees waived — depending, of course, on your reason for the request, the volume you purchase, and the performance of the fund.  Each company will differ, but the general instructions for appealing mutual funds are as follows:

  1. Get familiar with your prospectus.  Determine what the fees should be versus what you are being charged.  Check to see that all of your charges are spelled out so you know what your money is paying for.
  2.  There are two options for contacting your money manager or portfolio:
  • Option 1: Call your money manager, or set up an appointment to speak with them. Be sure that you have all of your information available such as account numbers, fund names, and investment details.
  • Option 2:  Draft and send a demand letter requesting waived or reduced fees.  Be sure to include why you feel the fees should be waived, such as how long you have been an investor, how profitable the fund has been, or the number of investments that you have made through this manager.  If the fee is hidden or previously unspecified, list those reasons, as well.
  1. Be sure to include all of your contact information, such as your name, address, account number, phone number, and the hours you are available to speak.  Also, make sure that you say how you want the refund to be handled. It could become a reinvestment, be deposited to your banking account, or be handled in some other way.
  2. Be sure to make copies of all correspondence and keep them together in one place.

What If I Can't Do It on My Own?

If you want to appeal your mutual funds but cannot go to your manager's office or are unavailable during regular office hours, DoNotPay can help.  If you are unsure of where to start, DoNotPay can help with that, too.  DoNotPay makes it easy and fast to successfully create and send a demand letter to get your mutual fund fees waived in just three easy steps.

Let DoNotPay Help You Get Your Mutual Fund Fees Waived

Here's how you can use DoNotPay to appeal fees:

 

  1. Search "appeal fees" on DoNotPay, choose the Fight and Waive Fees product, and select the type of fee you want to appeal. 
  2. Select the company —in this case FedEx — and enter the details of your transaction. Include your account number if you have one. 
  3. Submit your case! Let the world's first robot lawyer handle it from there. DoNotPay will generate the best argument for your case and make sure your fee waiver request gets sent to the merchant for processing. 

Can DoNotPay Help Me With Other Fees?

DoNotPay can help waive fees from a number of banks, airlines, and other companies.  For example, we can help with issues from:

What Else Can DoNotPay Do?

DoNotPay can help find solutions to many of your day-to-day problems.  Want to get compensated for a canceled flight?  We can help. We can also help you get a passport photo, notarize a document, or find and apply for scholarships.  How can DoNotPay help you?

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