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What is a Management Expense Ratio (MER)?

April 26, 2017expense Management mer ratio

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What is a Management Expense Ratio (MER)?

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A fund company charges the MER before any returns are paid out to investors. The MER includes the portfolio managers compensation and other expenses associated with running the fund. The fees vary from one fund company to another and the fund type, the lowest fees charged for money market and index funds, while sector and specialty funds are charged the highest.