One of the aspects of investing that is often over-shadowed by investment returns is the importance of expense ratios in mutual funds. These expenses can erode returns and are often misunderstood by investors. Expense ratios are the fees paid to the fund itself by investors like you and me. These fees are expressed as a percentage and go to cover the costs of running the fund.
The expense ratio of a mutual fund wraps several fees into one number making it somewhat easy to understand. The number is expressed as a percentage of assets under management. For example, …Read More