The fund's cost of doing business, expressed as a percentage of assets.

The ratio of total expenses, which include management fees, 12(b)-1 charges (if any) the cost of shareholder mailings, and other administrative expenses, to net assets of the fund. You can find the E/R in the fund's prospectus.

For a mutual fund, the expense ratio is the annual operating expenses (including management fees) divided by average annual set assets.

The percentage of expenses of premiums. For company budgetary purposes, the term expense ratio refers to the ratio of expenses paid to premiums written. Other types of expense ratios are used, such as expenses paid to net premiums written: Expenses incurred to premiums earned.

The cost of owning a mutual fund, or the operating expenses.

Proportion of total annual operating expenses to net assets.

Expenses associated with running an insurance business, such as commission, professional fees and other administrative costs, expressed as a percentage of premiums. Also the annual operating costs of an investment fund, expressed as a percentage of assets.

The ratio of an insurer's underwriting expenses to net premiums written, if determined in accordance with statutory accounting practices; or the ratio of underwriting expenses (adjusted by deferred acquisition costs) and operating expenses (excluding interest expense) to earned premiums, if determined in accordance with generally accepted accounting principles.

In insurance, that part or percentage of the premium devoted to paying the acquisition and service costs of insurance written.

The ratio of insurance company losses, including losses and adjusting expenses, to written premium.

The percentage of an annuity account that is paid on a yearly basis toward insurance and investment charges.

See annual expense ratio.

The percentage of total assets that shareholders pay for mutual fund operation and management.

The annual fee a mutual fund company charges its customers, expressed as a percentage of your investment. The current average expense ratio for stock funds is 1.4%, which means that the fund takes 1.4% of your investment each year. Index funds, on the other hand, can have much lower expense ratios – the Vanguard 500 Index Fund, for example, charges only 0.18%. The difference this makes to your investment is considerable: $10,000 held for 10 years in a fund with a growth rate of 12% and an expense ratio of 1.4% will grow to $26,974, while the same investment in a fund with the same growth rate but an expense ratio of 0.18% will grow to $30,504.

The ratio of total expenses, excluding debt service, to either potential or effective gross income.

Combined cost of a fund's management fees and operating expenses for a given year. Operating expenses include accounting costs, transaction costs, etc. Expressed as a percentage of fund assets. With fixed-income funds in particular, lower expenses generally translate into higher fund yields and returns. (see Management Fee)

Expense ratios tell you how ongoing fund expenses impact your return (they are already deducted on a daily basis in the price). The ratio is calculated including: annual management fee, trustee fee, performance fee if any, accounting and valuation fees, registrar fees, custodian & depository fees, legal, audit and professional fees, amortized marketing expenses and printing and distribution costs. Importantly, it excludes the sales charge.

Expenses incurred, expressed as a percentage of net written premiums.

A portion of the fund's assets used to pay the expenses associated with the fund. The three primary types of expenses incurred by the General Board are fees paid to the fund's investment manager, fees paid to the custodian bank responsible for the safekeeping of the fund's assets and costs incurred by the General Board to administer the funds.

The amount, as a percentage of your total annuity account balance, that you pay annually for investment and insurance-related charges.

The percentage of assets used to run a mutual fund. Typically included in this ratio are management fees, advertising fees, and overhead costs but not brokerage costs for trading the portfolio.

The ratio of operating expenses to premiums of a company.

The percentage of mutual fund assets deducted for management and operating expenses. The expense ratio and other information about a fund can be found in its prospectus.

The ratio of total internal expenses to fund assets. The expenses include, but are not limited to, items such as legal and custody charges, management fees and sales charges such as 12b-1 fees. Performance statistics are net of the expense ratio.

Percentage ratio of expenditure for insurance operations to earned premiums.

Percentage of fund assets that fund manager may withdraw each year to pay for operating expenses.

The Includes investment management administrative costs, and 12b-1 fees. The expense ratio does not include the cost of acquiring a fund, such as commissions and loads. Go to Top

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The percentage of premium not directed to the coverage of losses but rather to the payment of expenses associated with writing and servicing the risk.

The ratio of a company's operating expenses to premiums written. (Expenses include losses and loss adjustment expenses.)

The percentage of a portfolio's average net assets used to pay its annual expenses.

Amount that shareholders pay annually for mutual fund operating expenses and management fees. These expenses include shareholder services, salaries for money managers and administrative staff, and investor centers, among many others. The expense ratio is taken out of the fund's current income and disclosed in the prospectus to shareholders.

the percentage of a mutual fund that is taken out of the fundâ€(tm)s assets to pay expenses (portfolio management fees, advertising expenses, custody fees).

A ratio used to analyze the amount paid for operating expenses and management fees by a company. In the insurance industry, the percentage is obtained by dividing the underwriting expenses by net premiums written. It represents the amount used to pay the costs of acquiring, writing and servicing insurance business.

The percentage of each premium dollar the insurer spends on expenses Ð overhead, marketing, and commissions.

The percentage of a fund's assets that are used to pay its annual expenses.

The ratio of a company's operating expenses including acquisition costs to premiums written or earned.

The percentage of gross income that is consumed by the operating expenses of a property.

The fee you pay to own a mutual fund.

This amount, expressed as an annualized percentage of total assets, is what shareholders pay for mutual fund operating expenses and management fees. The expense ratio is disclosed in the prospectus.

An expense ratio is the amount you pay annually to a mutual fund for operating expenses and management fees, expressed as a percentage of the net asset value of your investment in the fund.

The ratio of total expenses to net assets of a mutual fund. Expenses include management fees, 12(b)1 charges, if any, the cost of shareholder mailings and other administrative expenses. The ratio is listed in a fund's prospectus. Expense ratios may be a function of a fund's size rather than of its success in controlling expenses.

The expense ratio includes investment management administrative costs, and 12b-1 fees. The expense ratio does not include the cost of acquiring a fund, such as commissions and loads. Back

A fund's operating expenses, expressed as a percentage of its average net assets. Funds with lower expense ratios are able to distribute a higher percentage of gross income returns to shareholders.

The percentage of the premium used to pay all costs of acquiring, writing, and servicing the bond.

The percentage of total assets used to pay for fund expenses.  High expense ratios decrease investors' returns. If two funds both earned a 10% return before fees but fund A had an expense ratio that was 2 percent higher than fund B, you'd lose an extra 20 percent of your expected returns each year if your money was in fund A.

Charge, stated as a percentage of total investment, that shareholders pay for a mutual fund's operating expenses, management fees and other overhead expenses. The money is withheld from the fund's current income and is not an out-of-pocket cost to the investor. It is normally disclosed in the fund's annual report to shareholders. See: Expense; Management Fee

The percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund's NAV. Sales charges are not included in the expense ratio.

mutual fund fees and expenses for operation and management expressed as an annual percentage and deducted from the net asset value

The Expenses of a mutual fund include management fees and all the fees associated with the fund's daily operations. Expense Ratio refers to the annual percentage of fund's assets that is paid out in expenses.

The ratio of underwriting expenses (including commissions) to net premiums written, expressed as a percent. This ratio measures the company's operational efficiency in underwriting its book of business.

the fund's total annual operating expenses (including management fees, distribution (12b-1) fees, and other expenses) expressed as a percentage of average net assets.

A comparison of the costs of owning and operating something to its potential gross income.

The percentage of premium used to pay all the costs of acquiring, writing and servicing insurance and reinsurance.

The ratio of property and casualty insurance operating expenses to net earned premiums.

The cost of doing business, such as for a mutual fund; usually expressed as the percent of a fund's average net assets. This pays its annual expenses and reduces return to the investors. In includes management fees, administrative fees, and 12b-1 fees. .

The percentage of a mutual fund that is taken out of the pockets of shareholders to pay expenses -- most of which go to the salesmen and managers of the mutual fund. If you are investing in mutual funds, look for funds with an expense ratio of less than one percent. See Mutual Funds: Expense Ratios.

Expenses incurred, expressed as a percentage or net written premiums.

The ratio between a mutual fund's operating expenses for the year and the average value of its net assets.

The proportion of assets of a mutual fund required to pay annual operating expenses and management fees. If a fund charges an annual fee of 50c per $100 of net assets, the expense ratio will be .5%. The expense ratio is independent of any sales fees.

The proportionate relationship of an insurer's expenses to premium expressed as a percentage.

The ratio of insurance company operating expenses to premiums.

This expense is charged by Mutual Fund companies for managing the operations of the fund. Expense ratios can often run as high as 2% and eat away at an investor's earnings. The expense is charged to all shareholders of that particular fund and come out of earnings. air Market Value The value of an asset that a willing buyer would purchase a product or service and a willing seller would sell the asset or service.

Ratio of total expenses to net assets of fund. The Expense Ration includes management fees, 12(b)1 charges, if any, cost of shareholder mailings and other administrative expenses. The Expense Ratio is required to be disclosed in the prospectus.

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. According to Callan Associates Inc., the average expense ratios for different fund classes are: Large-cap domestic stock funds 1.01 percent Small-cap domestic stock funds 1.33 percent International stock funds 1.76 percent Domestic bond funds 0.91 percent Global bond funds 1.49 percent

The annual fee paid by shareholders for mutual fund expenses, including management fees, 12b-1 fees, and other operating costs. Different types of funds generally have different expense ratios, so investors must compare a specific fund to its industry average.

The sum of general insurance expenses, direct commissions, and net commissions and expense allowances on reinsurance assumed and ceded, as a percentage of net premiums and annuity and fund deposits.

A mutual fund's cost of doing business - disclosed in the prospectus - expressed as a percent of its assets.

The percentage of a mutual fund's assets that are spent to operate the fund. The expense ratio includes expenses such as management and advisory fees, 12b-1 (distribution and advertising) fees, and operating expenses such as taxes, investor services, and interest expenses. The expense ratio does not include brokerage costs and various other transaction costs that also contribute to a fund's total expenses. All of these expenses are taken out of the fund's assets and lower the return that fund holders achieve.

shows the percentage of a mutual fund's assets that go to pay for such things as operating expenses, management fees and 12b-1 fees (which are used to pay for a mutual fund's advertising). The expense ratio, though, does not include loads (that is, commissions to brokers and financial planners).

The percentage of the assets that were spent to run a mutual fund (as of the last annual statement). This includes expenses such as management and advisory fees, overhead costs and 12b-1 (distribution and advertising ) fees. The expense ratio does not include brokerage costs for trading the portfolio, although these are reported as a percentage of assets to the SEC by the funds in a Statement of Additional Information (SAI). the SAI is available to shareholders on request. Neither the expense ratio or the SAI includes the transaction costs of spreads, normally incurred in unlisted securities and foreign stocks. These two costs can add significantly to the reported expenses of a fund. The expense ratio is often termed an Operating Expense Ratio (OER).

The proportion that the expenses of the insurer bear to his income from premiums.

In appraisal of income properties, a comparison between expenses and income. To calculate, divide operating by effective gross income.

Percentage of fund assets (per share) paid for operating expenses including advisory feeds, 12b-1 fees, administrative fees and all other costs incurred by the fund. Expense ratios are quoted in the prospectus.

How much it costs a mutual fund or variable annuity sub-account to conduct business, as a percent of its assets. Expense ratios can be found in prospectuses.

A comparison of the operating expenses to potential gross income. This ratio can be compared over time and with that of other properties to determine the relative operating efficiency of the property considered.

The amount, as a percentage of your total variable annuity account value, that you pay annually for operating, management, and insurance expenses.

The annual fee charged to mutual fund shareholders (usually as a percentage of total investment) for the administration, operation and management expenses associated with a particular fund. May include management fees, 12b-1 fees and other fees, but does not include sales charges. Shows the actual amount that a fund takes out of its assets each year to cover its expenses.

The percentage of the expenses incurred, such as fees, overhead costs, advertising and distribution costs in order to run a mutual fund (as of the last annual statement).

For a mutual fund: annual operating expenses (including management fee)  average annual net assets. In some cases, the management company may reimburse the mutual fund should the ratio exceed a certain percentage. (See also Operating Ratio).

The percentage of mutual fund assets deducted each year for expenses, which include management fees, operating costs, administrative fees, 12b-1 fees and all other costs incurred by the fund. Recently, the average expense ratio for domestic equity funds was 1.4%. For fixed-income funds it was 1.1%. International funds have higher expense ratios, averaging around 1.9%. There is no reason to buy funds with expense ratios higher than that. Sometimes the fund's management may elect to waive part of the expenses charged to shareholders in order to boost returns. But this is usually a temporary waiver, so be careful because such funds often raise their expenses once the waiver period ends.

The percentage of the premium dollar devoted to paying expenses of an insurer, other than losses.

This represents the sum of a fund's annual operating costs, expressed as a percentage of average net assets.

A percentage of assets paid by fund shareholders to cover the expenses of managing the fund.

Percentage of each premium dollar that goes to insurers' expenses including overhead, marketing, and commissions.

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The amount, as a percentage of the total annuity account balance, that is charged annually for investment and insurance-related charges.

An amount (expressed as a percentage of total investment) that shareholders pay annually for mutual fund operating expenses and management fees.

The dollar amount that represents acquisition and service costs, expressed as a percentage of written premium.

A fund's cost of doing business, disclosed in the prospectus as a percent of assets. Family of Funds: A mutual fund "family" is a number of different mutual funds, each with its own investment objective and distributed by the same company.