Expense ratio


KF Rookie
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?


Staff member
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.