What is an expense ratio?

What is an expense ratio?

An expense ratio is a measure of the costs associated with managing an investment fund, expressed as a percentage of the fund's assets.

Why is the expense ratio important?

The expense ratio is important because it affects your overall investment returns. A lower expense ratio means more of your money is working for you.

How do I find the expense ratio of a fund?

You can find the expense ratio in the fund's prospectus or on financial websites that provide fund information.

What is considered a good expense ratio?

A good expense ratio typically varies by fund type, but generally, an expense ratio below 1% is considered favorable.