If someone wants to manage your money for free, you might reasonably fear that there's some hidden catch or fine print -- something that allows the manager to somehow shuffle money from your pocket to theirs. After all, finance has never been an industry that attracts people who enjoy working for free. Yet Fidelity wants to turn mutual funds into charity work. Its new ZERO funds are index funds that offer an industry-leading expense ratio of exactly 0. That is to say that Fidelity wants to work for you and charge you nothing for it. These funds are essentially a loss leader -- the financial equivalent of a Black Friday doorbuster deal.

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Bloomberg - Are you a robot?
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The FCT Model
Over the past 12 months, our aggressive portfolio lost 6. Rowe Price QM U. This package is ideal for building up a tuition fund for a kid with Ivy League stars in his eyes. Or you can use it for other goals — say, an approaching retirement in a decade or a bit sooner. Short time frames require more caution.



I'm certainly not a fan of customer rip-offs, but even non-profits have to be cash-flow positive, or have deep pockets, to help anyone for long. Every business needs to develop a revenue model even before a product. The alternatives range from giving the product away for free revenue from ads , to pricing based on costs, to charging what the market will bear premium pricing.