Expense Ratio
Total Expense Ratio (TER)
Mutual FundsThe annual fee charged by a mutual fund to manage your money, expressed as a percentage of assets.
Formula
Expense Ratio = (Total Fund Expenses / Average AUM) × 100
Why it matters
Lower expense ratios mean more returns in your pocket. A 0.5% difference compounded over 20 years costs lakhs.
Indian example
Related terms
Learn the concept
Mutual Funds, ETFs, AIFs →From the research
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