Studies on mutual funds have found that the management expense ratio (MER)has no relationship to overall fund performance.

Question

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Studies have found that there is a weak negative correlation between MER and fund performance, meaning that funds with lower MERs tend to perform slightly better than those with higher MERs. However, this correlation is not strong enough to make MER the sole predictor of fund success, as other factors such as investment strategy and market conditions also play a role.

Studies on Mutual Funds Have Found That the Management Expense