What is Expense Ratio? — Meaning, Definition & Example
Definition
Expense ratio is the annual fee charged by a mutual fund to manage your investment, expressed as a percentage of assets under management. It includes fund management fees, administrative costs, and distribution charges. Lower expense ratios mean more returns for investors.
If a fund has an expense ratio of 0.5% and your investment is ₹1 lakh, you pay ₹500 annually as management fee.
🇮🇳 Expense Ratio in Hindi / हिंदी में
एक्सपेंस रेशियो — एक्सपेंस रेशियो म्यूचुअल फंड द्वारा आपके निवेश के प्रबंधन के लिए लिया जाने वाला वार्षिक शुल्क है, जो प्रबंधन के तहत संपत्ति के प्रतिशत के रूप में व्यक्त किया जाता है।
Expense Ratio (Hinglish) — Expense ratio wo annual fee hai jo mutual fund aapke investment manage karne ke liye charge karta hai. Ye AUM ke percentage mein hota hai. Kam expense ratio matlab investors ko zyada returns milte hain.