Investors are going for the cheap, as 90% of assets in stock funds are those with below-average expense ratios, according to the Investment Company Institute. The study notes that the cost of owning mutual funds are at their lowest level since 1980, with investors paying an average expense ratio last year of 0.91%, well below the industry average of 1.53%. “The latest data indicate that vigorous competition among fund providers is clearly benefiting investors,” ICI Senior Economist Sean Collins, who authored the report, said in a release. “Fees are obviously an important component of total returns and this study shows that investors are paying attention to them.” The study also found that 30% of new fund purchases in 2005 went to those with an expense ratio of less than 50 basis points
