Definition: What is Expense Ratio?
Expense Ratio is the efficiency ratio which measures the management expenses as a total fund’s percentage invested in a mutual fund.
In other words, Expensive ratio calculates the percentage of your investment in funds which use to paying the management fee by comparing the total assets in the fund with the mutual fund management fee.
To create, manage, and maintain the mutual fund may be costly. An experience money manager monitors actively the invested assets in the company and uses the money according to its goal.
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