After Reimbursement Expense Ratio

AAA

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".

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.

RELATED TERMS
  1. Expense

    1. The economic costs that a business incurs through its operations ...
  2. Expense Ratio

    A measure of what it costs an investment company to operate a ...
  3. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  4. Capped Fund

    A mutual fund that has a limited amount of operating expenses ...
  5. Expense Limit

    A limit placed on the operating expenses incurred by a mutual ...
  6. Non-Capped Fund

    A mutual fund with no limit on the annual operating expenses ...
Related Articles
  1. How To Pick A Good Mutual Fund
    Mutual Funds & ETFs

    How To Pick A Good Mutual Fund

  2. Will A New Fund Manager Cost You?
    Mutual Funds & ETFs

    Will A New Fund Manager Cost You?

  3. 5 Ways To Measure Mutual Fund Risk
    Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

  4. The Advantages Of Mutual Funds
    Mutual Funds & ETFs

    The Advantages Of Mutual Funds

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center