After Reimbursement Expense Ratio
Definition of 'After Reimbursement Expense Ratio'The actual expense paid by mutual fund investors. The after reimbursement expense ratio is calculated by subtracting any reimbursements made to the fund by the management and contractual fee waivers from the gross expense ratio.Also known as the "net expense ratio". |
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Investopedia explains 'After Reimbursement Expense Ratio'Management will often reimburse the fund for indirect expenses, such as any dividends paid for short positions in stock.Sometimes the expense ratio will be voluntarily limited by the managers through a fee waiver to keep the fund's pricing competitive. Fee waivers allow the fund to set a maximum level on the amount charged to shareholders. When a fund adopts an expense limit, it is referred to as a capped fund. |
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