Guillén, MontserratJarner, Søren FiigNielsen, Jens PerchPérez Marín, Ana María2016-02-172016-02-1720141537-744Xhttps://hdl.handle.net/2445/69487The impact of administrative costs on the distribution of terminal wealth is approximated using a simple formula applicable to many investment situations. We show that the reduction in median returns attributable to administrative fees is usually at least twice the amount of the administrative costs charged for most investment funds, when considering a risk-adjustment correction over a reasonably long-term time horizon. The example we present covers a number of standard cases and can be applied to passive investments, mutual funds, and hedge funds. Our results show investors the potential losses they face in performance due to administrative costs.12 p.application/pdfengcc-by (c) Guillén, Montserrat et al., 2014http://creativecommons.org/licenses/by/3.0/esRiquesaDistribució (Teoria econòmica)Societats d'inversióControl de costosWealthDistribution (Economic theory)Mutual fundsCost controlinfo:eu-repo/semantics/article6456292016-02-17info:eu-repo/semantics/openAccess25180200