But the SEC study gave ammunition to the fund industry as well as its critics . It's an enormous debate. Critics have long charged that fund fees haven't fallen enough, especially because it's cheaper to run big funds.
Expenses have fallen slightly the past four years, the study says.
Many funds now use annual 12b-1 marketing fees to pay brokers, instead of upfront sales charges. The SEC's report agrees. Bond funds are less expensive to run than stock funds. In 1992, bond funds were the most popular funds. Now, stock funds are.