what is the expense ratio of mutual funds

By Abhijit JHa

Oct, 08 2022

The expense ratio of a mutual fund is the percentage of your assets that you pay in fees each year.

The average expense ratio for all mutual funds is about 1.25%.

The expense ratio is important because it affects how much of your investment returns you keep.

This means that if you have a $10,000 investment in a mutual fund, you would pay $125 in fees each year.

This includes things like the fund manager's salary, research costs, and other administrative costs.

The lower the expense ratio, the more of the fund's assets are available to investors.

Some mutual funds have much higher expense ratios, while some have much lower ratios.

index funds often have the lowest expense ratios because they are passively managed.

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