Total Expense Ratio (TER)

TER is a measure of the total costs associated with managing and operating an investment fund, such as a mutual fund. These costs consist primarily of management fees and additional expenses such as trading fees and legal fees, as well as any other operational expenses. The total cost of the fund is divided by the fund’s total assets to arrive at a percentage amount, which represents the TER. The size of the TER is important to investors, as the costs that come out of the fund affect overall investor returns.