{"id":4161,"date":"2023-03-13T09:09:23","date_gmt":"2023-03-13T09:09:23","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/expense-ratio\/"},"modified":"2023-03-13T09:09:23","modified_gmt":"2023-03-13T09:09:23","slug":"expense-ratio","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/expense-ratio\/","title":{"rendered":"Expense Ratio"},"content":{"rendered":"<p>\nExpense Ratio or Total Expense Ratio (TER) is the annual fee or charge that a mutual fund charges to the scheme and in turn, to its investors. It includes charges like management fee, administrative cost, trading\/brokerage and other operating expenses, audit fee, legal fee, sales &amp; marketing expenses etc. It is expressed as a factor of the fund\u2019s net assets on a daily basis.  <\/p>\n<p>Calculation:<br \/>\nExpense Ratio = Total Fund Expenses\/AUM of the Fund x 100<\/p>\n<h2>What should investors know about expense ratio?<\/h2>\n<p>Things to keep in mind with respect to Expense Ratio:<br \/>\n1. The Net Asset Value (NAV) of a scheme is calculated daily after deducting the total expenses. A higher expense ratio would mean lower Net Asset Value<br \/>\n2. Direct plans have a low expense ratio because there is no intermediary involved and thus there are no distributor, advisor or agent fees<br \/>\n3. An active fund will have a higher expense ratio as compared to a passive fund<br \/>\n4. Expense ratio can bring a substantial difference to the size of corpus an investor can create over a longer time frame<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Expense Ratio or Total Expense Ratio (TER) is the annual fee or charge that a mutual fund charges to the scheme and in turn, to its investors. It includes charges like management fee, administrative cost, trading\/brokerage and other operating expenses, audit fee, legal fee, sales &amp; marketing expenses etc. It is expressed as a factor [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-4161","post","type-post","status-publish","format-standard","hentry","category-mutual-funds"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4161"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4161\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}