what is base total expense ratio
Answers
Example-Mutual funds
Answer:
Explanation:Mutual funds run by professionals which help investors in managing their investment as well as helping them grow their money by investing in various asset class such as bonds, equities, gold and other assets. These fund houses charges a fee for their services of managing investor`s portfolio which is called to the Total Expense Ratio.
Mutual funds basically runs on two expenses.
The first one is of a one time expense which is incurred at the time of launching a fund. In India these expenses are not borne by the investors. The fund usually bears it.
The second one is known as a recurring expenses such as distributor`s commission, management fee, distributors’ commission, registrar’s fee, trustee fee and marketing expenses. These expenses sums up to the Total Expense Ratio.
The total expense ratio is calculated by dividing the total cost of the fund by the total asset of fund. This percentage amount is known as the total expense ratio. It is also referred as 'after reimbursement expense ratio' or 'after reimbursement expense ratio'.