Savings and Investments

Mutual Funds

What is an expense ratio?

The expense ratio is the amount of expenses divided by the average net asset value of the portfolio of stocks, expressed as a percentage. A mutual fund with 1% expense ratio means that 1% of the value of the entire portfolio is used to actually operate the mutual fund.


This is a web preview of the "The Handy Personal Finance Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App