Expense ratio

[ansu]

I am unable to understand how the expense ratio is working in a mutual fund can someone please help me in understanding it in depth?

 

[ShavirB]

Expense Ratio is simply the sum total of all the fees charges by Mutual Fund House to Investors. It involves - Fund Managers's Fees, Marketing Cost, Legal Cost, Distribution Cost, etc.

So if the Fund has Expense Ratio of 1%, that means 1% of the Total Assets in that Fund are being used in Managing that Fund.