Question

What are the 2 types of fees that includes in mutual fund?

Answer 1

Mutual funds have two types of fees: management fees and expense ratio.

Step-by-step explanation:

There are two types of fees that are included in mutual funds:

1. Management fees: These fees are charged by the mutual fund company to cover the cost of managing the fund. The management fees are usually calculated as a percentage of the total assets under management. For example, if a mutual fund has $1 million in assets and charges a management fee of 1%, the fee would be $10,000.
2. Expense ratio: This fee includes various operating expenses of the mutual fund, such as administrative costs, marketing expenses, and legal fees. The expense ratio is also expressed as a percentage of the total assets under management. For example, if a mutual fund has $1 million in assets and has an expense ratio of 0.5%, the expense ratio would be $5,000.