close
no thumb

This ratio deals explained in relation to Mutual Funds and Portfolio Analysis. For other purposes, it may have different meaning.

The percentage of the assets that were spent to run a mutual fund is known as Expense Ratio. It includes things like management and advisory fees, travfel costs and consultancy fees. The expense ratio does not include brokerage costs for trading the portfolio. Also referred to as the Management Ratio (MER).

One needs to pay close attention to the expense ratio, it can sometimes be as high as 2-3% which can seriously undermine the performance of mutual fund.