Which of the following is True about MERs?

Question

Quizplus · Accepted Answer

Studies have shown that mutual funds with lower MERs tend to outperform those with higher MERs. A lower MER means more of the investor's money is actually being invested and working for them, rather than being taken as fees by the fund manager. Option A is incorrect because MERs include all expenses related to managing the fund, not just manager and sales expenses. Option C is incorrect because different types of mutual funds have different expense structures. Option D is partially correct, as subtracting the MER from the posted return will give a gross return, but the net return will also need to account for any other taxes or fees.

Which of the Following Is True About MERs