Total Expense Ratio TER Understand and Compare Fund Costs

1315 reads · Last updated: January 15, 2026

The total expense ratio (TER) is a measure of the total costs associated with managing and operating an investment fund, such as a mutual fund. These costs consist primarily of management fees and additional expenses, such as trading fees, legal fees, auditor fees, and other operational expenses.The total cost of the fund is divided by the fund’s total assets to arrive at a percentage amount, which represents the TER. The TER is also known as the net expense ratio or after reimbursement expense ratio.

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