Mutual Funds (US): Operating Expenses

Mutual Funds (US): Operating Expenses

Intuition Publishing
Updated Sep 25, 2020

Operating expenses represent a mutual fund's cost of doing business and are directly deducted from fund assets before any earnings are distributed to investors. Fund operating expenses can be expressed in terms of net asset value - this relationship is referred to as the expense ratio. Here we examine the key components of operating expenses, such as management fees and distribution charges, show how the expense ratio is calculated, and look at other fee and expense information which funds are required to report.