Before Reimbursement Expense Ratio

AAA

DEFINITION of 'Before Reimbursement Expense Ratio'

The percentage of a fund's average net assets that is used to cover the annual operating expenses of managing a mutual fund before reimbursements are made to the fund by managers.

Also known as the "gross expense ratio".

INVESTOPEDIA EXPLAINS 'Before Reimbursement Expense Ratio'

A mutual fund's operating expenses include management fees, transaction costs and other business costs. Some of these expenses may be reimbursed by management. Reimbursed fees often include indirect fees such as transaction costs from dealing with other mutual funds, transaction costs associated with exchange traded funds, or the dividends paid out from a short position on an asset.

Reimbursements also occur when a fund's expense ratio is limited. In capped funds, an expense limit is created to place a ceiling on the charges to the fund's shareholders. The limit is often expressed as a percentage and is a highlighted in the fund's prospectus.

RELATED TERMS
  1. Expense Limit

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

    A mutual fund with no limit on the annual operating expenses ...
  3. After Reimbursement Expense Ratio

    The actual expense paid by mutual fund investors. The after reimbursement ...
  4. Expense

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

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

    An investment vehicle that is made up of a pool of funds collected ...
Related Articles
  1. When To Sell A Mutual Fund
    Mutual Funds & ETFs

    When To Sell A Mutual Fund

  2. How To Pick A Good Mutual Fund
    Mutual Funds & ETFs

    How To Pick A Good Mutual Fund

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

    Will A New Fund Manager Cost You?

  4. The Advantages Of Mutual Funds
    Mutual Funds & ETFs

    The Advantages Of Mutual Funds

comments powered by Disqus
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  5. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
  6. Underwriting

    1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments ...
Trading Center