When is mer charged

MERs are paid indirectly as they are automatically deducted from a mutual fund. For example:. The MER typically represents the majority of the costs charged to the fund, but not all. For funds that invest in equities, portfolio transaction costs, such as brokerage commissions and any HST applicable to those costs, are not included in the MER. These trading expenses incurred by the fund manager are expressed as the Trading Expense Ratio TER and are a cost of doing business.

TERs can be found in the Fund Facts document that is provided to all investors prior to investing in any fund. For more information about the costs of investing in mutual funds, please speak with your advisor.

Alternative investments Alternative investments list About alternative investments. Watch this video or keep reading for a breakdown of MERs.

How do MERs work? Fee-based Series Series F mutual funds are available in fee-based accounts and their MER is comprised of investment management fees, operating expenses and taxes.

In some cases, group savings plans like group RRSPs or mutual funds charge lower management fees due to the higher value of the fund, which can be beneficial to investors. In addition, FlexiFonds mutual fund advisors are not paid on commission, which encourages them to offer neutral and objective advice. Furthermore, no fees are incurred when purchasing or exiting these funds.

FlexiFonds administrative fees are fixed, and all transaction fees are included in the management fees. Be aware that management and operating fees are collected from the total value of the fund and don't always appear on your account statement. This makes them more difficult to evaluate, even if they do reduce the return on your investments. The best way to get a clear view of your fees is to read the Fund Facts.

In this document, you'll find information on the MER, the operating expense ratio, purchase and redemption fees, and trailer fees. This information can also be found in the fund's prospectus. The important thing is to do your research and compare the different products on the market. Created to provide our savers with a tailored and affordable service, the FlexiFonds offering can be accessed online or by phone, which helps reduce management fees. It should also be noted that while higher fees may put more pressure on the fund manager, better returns are not guaranteed.

In other words, the goal is to maximize return and minimize risk," says Lafontaine. Always ask yourself whether the return is worth the fees. My finances 5 min. How management fees and the MER impact your savings What you need to know about management fees and the management expense ratio to keep them from draining your savings.

The impact of management fees on return The higher the management expense ratio MER , the bigger its effect on your return. Total amount saved. Total paid fees. A fee for every fund Management fees are not the same for every product, and the percentage they represent varies according to different factors. Many investors are responding favorably to the rapid digitalization in investment services and the ability to build high-quality portfolios for a minimal cost using easily accessible online platforms.

Allied Market Research. Mutual Fund Essentials. ETF Essentials. Mutual Funds. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads.

Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Your Money. Personal Finance. Your Practice. Popular Courses. Key Takeaways Management fees—which include expenses ranging from manager salaries to custodial services and marketing costs—reduce the value of an ETF investment.

They are a subset of the total management expense ratio MER.