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Why Are Mutual Fund Fees So High? This Billionaire Knows: Ron Baron
FYI: Ronald S. Baron, the founder of Baron Funds, at his annual conference in New York last month. “If you want the lowest fee, you should not invest with us,” he said in an interview, arguing that his skills and experience justify his costs. Baron Funds
Another reason John Bogle mentioned recently is the raging bull market we've had since 2009. Even though most active funds are hemorrhaging investors via outfliws it doesn't show much on their bottom lines as they still haves gains from the rising market to counteract the outflows. So they feel no pressure to cut fees to compete as they're still making loads of moohla. It will be interesting to see what happens in the next downturn. Active managers always say they outperform in a downturn, but I doubt they will.
@LewisBraham I liken the higher fees to "insurance premium" payments. Only time will tell whether those payments will get recouped during the next major downturn and the early part of the subsequent recovery. (Is the fine print permitting non-payment resulting from changed conditions being sufficiently considered?)
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