7/31/2023 0 Comments Net expense ratio![]() For example, a fund might have an A class with an expense ratio of 1.00%, and a C class with an expense ratio of 1.50%. Some funds have multiple share classes, each with a different expense ratio. This is because the expense ratio can vary from one share class to another. Mutual funds bring an additional layer of information that investors must understand. Tip: A lower expense ratio means that more of the invested money is going towards actual investments, rather than fees. And, in general, investors will want to look for a fund with a lower total expense ratio. So, why is this distinction important? Well, it's helpful to know how much of the investment is actually going towards the management of the fund.
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