Your Money: How Total Expense Ratio affects Mutual Fund Net Asset Value

Mutual fund investors typically expect the Net Asset Value (NAV) of the mutual fund scheme they have invested in to appreciate in line with the market prices of the stocks and bonds held by the mutual fund scheme. When this does not happen, investors are surprised.

The culprit is what is called the Total Expense Ratio (TER), or scheme expenses. The daily NAV of any mutual fund scheme reflects these expenses. Let us understand how.

Read the full article published originally on Financial Express: Your Money: How Total Expense Ratio affects mutual fund Net Asset Value