Sunday, December 26, 2010

Operating Expenses

A fund's operating expenses are the business costs that are paid out of a fund's assets for the costs of running the fund, such as management fees, 12b-1 fees and other sales fees, and other expenses. Investors should closely monitor the amount of operating expenses charged as a percentage of assets to ensure their money is being managed efficiently. A related term is the total expense ratio.

Synonyms: Admin expenses, Operating expense ratio, Management expense ratio
 
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