A shareholder pays the fee on a daily basis through an automatic reduction in the price of a fund. It can be difficult for the average investor to get a feel for how much is being paid for any particular fund.
What are mutual fund costs and expenses?
The "expense factor" is a key determinant of a fund's investment return to shareholders. Mutual fund costs and expenses are the expenses associated with running a mutual fund.
What are the charges applicable when investing in mutual funds?
The charges applicable are as follows: Entry Load – This is charged at the time of investing in a mutual fund scheme. This amount is deducted from the fund’s Net Asset Value (NAV).
What is expense ratio in mutual funds?
Most mutual funds will keep a percentage of the fund in cash equivalents that each day a portion is taken to cover the expenses of the fund. Thus, the expenses are being paid all the time from this portion. In the case of money market mutual funds, there is usually a drag on the yield that results from the expense ratio,i.e.