Expense Ratio Unlocking the Key to Investment Fund Costs

1697 reads · Last updated: December 5, 2025

The Expense Ratio is a crucial metric used to measure the operating costs of an investment fund, expressed as a percentage of the fund's average net assets. The expense ratio includes management fees, administrative fees, marketing fees, and other operational costs but excludes transaction fees. The formula for calculating the expense ratio is: Expense Ratio=(Total Annual ExpensesAverage Net Assets)×100%.

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