expense ratio

expense ratio definition - business

expense ratio

  1. The proportion of assets required to pay annual operating expenses and management fees of a mutual fund. If a fund charges an annual fee of $.50 per $100 of net assets, the expense ratio will be 0.5%.
  2. See operating expense ratio.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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