Wednesday, December 29, 2010

Expense Ratio

A fund's Expense Ratio is the fund expenses expressed as a percentage of total assets. A related term is the total expense ratio, which incorporates all expenses to an investor who invests in the fund; including investment management expense, admin and operating expense, custody fees, trustee fees, etc. It is important that investors are aware of what expense ratio they are paying in their investments because of the negative impact it has on returns; investors need to weigh the expenses they pay versus the outcomes they get.

Synonyms: Total Expense Ratio, Management expense ratio, Fund expenses

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