What is the expense ratio in mutual funds?

What is the expense ratio in mutual funds?

The expense ratio is the annual fee that mutual funds charge their shareholders, expressed as a percentage of the fund's average assets.

Why is the expense ratio important for investors?

It's important because it directly affects your investment returns. A lower expense ratio means more of your money stays invested.

How can I find the expense ratio of a mutual 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?

Generally, an expense ratio below 1% is considered good, but it can vary depending on the type of fund.