Expense Ratio
What is it? The percentage of total investment that shareholders pay annually for mutual fund management fees and operating expenses.Common stock funds tend to have higher expense ratios than bond funds; likewise smaller funds have higher ratios than larger funds. International funds and precious metal funds have higher ratios than domestic funds. Fixed income and index funds tend to have very low expense ratios, but the lowest expense ratios are usually charged by funds aimed at institutional investors.Added By: Wyatt
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