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Old 06-30-2017,
Abardinanix Abardinanix is offline
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Join Date: Mar 2017
Posts: 0
Default Mutual fund Load question

I just started investing last week for the first time with scott trade online. I've invested my 401k money for a few years and have done pretty well, so I figured I could take some of my savings and put them in the same mutual funds, after signing up for a scottrade account.

I just invested $4000 in the Dreyfus Emerging Markets A fund (DRFMX)

After 15 minutes of searching after this, I noticed there's a DRFMX.lw fund. It seems the same, but with NO load fees. Here are the details of DRFMX:
gross expense ratio 1.77%
max sales load 5.75%
redemption fee 2.00%
mgmt fee 1.25

I don't know what all this means, but I'm assuming when I take the money out, It will be minus the 2% of what I invested.
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Old 07-01-2017,
Aarroncikk Aarroncikk is offline
Join Date: Dec 2014
Posts: 0

-What are max sales load, mgmt fee and gross expense ratio?

-Let's say I take this money out 10 years from now and it has doubled in value to $8k, then I decide to take it out. What will my fees be?

-Why is there a DRFMX.lw fund? Are these the same except one with fees and one without? What's the point of that?

-what would my fees be if I just removed my $ now and invested into the DRFMX.lw so i didn't have to pay any fees?

-how do I know before investing if a mutual fund will have any fees?

I thought mutual funds were much safer than stocks but now I'm a bit skeptical!
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Old 07-02-2017,
actinia actinia is offline
Join Date: Mar 2017
Posts: 0

Just quickly, it would do no good to switch funds NOW because if you bought DRFMX you've already paid the 5.75% load. Might as well hold on it at this point.

The point of DRFMX.lw not having a load is because it appears to be available directly through Dreyfus only, not through any broker. Since a load is typically paid to the broker for selling the fund, there's no reason to charge the load if there's no broker involved.

Finally, an expense ratio of 1.75% is rather high for my tastes. An example of what that means in practical terms is, your fund has to perform about 1.5% better each year than a Vanguard fund in the same category just to keep pace. That's a significant hurdle to overcome. Just for future reference. You can learn of a fund's fees beforehand by punching in its symbol at Morningstar.com, among others.
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Old 07-02-2017,
9Wn6x5pIol 9Wn6x5pIol is offline
Join Date: May 2017
Posts: 0

While I don't know a lot about the Dreyfus fund you mentioned, it does illustrate the difference in cost structure vs. an Exchange Traded Fund (ETF).

Go look at the Emerging Markets ETF - symbol EEM. Expense ration is .68%, and the only front end sales load is the 8 bucks brokerage commission.

Other advantages of EEM: you can trade it with options, reducing risk and increasing reward; low costs; trades all during the day, not just at end of market; very liquid; easy graphing for tech analysis, etc.

I expect the two instruments are very highly correlated, so you can get the same bang for better buck with EEM.
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Old 07-03-2017,
admin admin is offline
Join Date: Dec 2010
Posts: 756

Several financial instruments behaving similarly to DRFMX are:

DBPEX - Dreyfus Emerging Markets Fund Class B (Mutual Fund)
DRPEX - Dreyfus Emerging Markets Fund Class I (Mutual Fund)
DCPEX - Dreyfus Emerging Markets Fund Class C (Mutual Fund)
MIEGX - BNY Mellon Emerging Markets Fund Investor Shares (Mutual Fund)
SIEMX - SEI International Trust Emerging Markets Equity Class A (Mutual Fund)
TEMUX - Consulting Group Capital Markets Emerging Equity Inv (Mutual Fund)
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