November 30, 2011 by tfroberts

No.  The rates of return quoted include ongoing operating expenses such as investment management, custodial charges, record keeping, legal, audit and accounting. This is identified as the expense ratio. Marketing and distribution expenses are identified as 12b-1 fees. Both of these fees have been deducted from the gross rate of return so the rate you see published is a net rate.

Other costs such as trading - brokerage costs - and the effect of trading on your tax burden are not included. Funds with higher turnover ratios, more trading of securities, will have higher brokerage costs. If there are capital gains from these trades, you will be responsible for the taxes on the gains. This information is available from various sources, such as Morningstar, and should be considered when evaluating a fund for investment.