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Fund Fees Are Coming Down

Which funds cut expense ratios the most?

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This article first appeared in Morningstar FundInvestor.

Just-published data show that expense ratios, which tell you what a fund charged investors during the most recently completed fiscal year, have come down for three straight years.

Consider that the average individual investor paid 0.93% for U.S. stock funds in 2006 compared with 0.96% in 2005. That's great news because expenses play a vital role in determining the outcome of a long-term investment.

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Russel Kinnel has a position in the following securities mentioned above: POAGX. Find out about Morningstar’s editorial policies.