To cover managerial and other expenses, mutual funds typically charge

Question

Quizplus · Accepted Answer

Mutual funds typically charge management fees of less than 2 percent of total assets per year to cover their managerial and other expenses. This fee is deducted from the fund's assets, and is known as the expense ratio. It is important to compare expense ratios when choosing between different mutual funds, as a higher expense ratio can eat into investors' returns over time. Choices B, C, and D are not accurate as they do not reflect typical mutual fund fees.

To Cover Managerial and Other Expenses, Mutual Funds Typically Charge