Investopedia

Continue to Site »

Gross Expense Ratio - GER

Filed Under » , , ,
Dictionary Says

Definition of 'Gross Expense Ratio - GER'

The total percentage of a mutual fund's assets that are devoted to running the fund. The gross expense ratio (GER) is exclusive of any waiver of fees or expense reimbursements. Likewise, it does not include "outside" expenses, like brokerage costs for trading the portfolio. These and other costs are reported in a Statement of Additional Information (SAI) that is sent to the SEC.
Investopedia Says

Investopedia explains 'Gross Expense Ratio - GER'

The GER is important because it more directly correlates to the fund's performance than the plain expense ratio does. For example, if a fund has an expense ratio of 2% and a GER of 3%, it is readily apparent that 1% of the fund's assets were used to waive fees, reimburse expenses or provide other rebates not included in the expense ratio. This is important because such rebates and reimbursements may or may not continue in the future. Prudent investors will want to examine both figures and compare them to like funds before investing.

Articles Of Interest

  1.

    Why Expense Ratios Are Important To Investors

    Expense ratios aren't just numbers in a column. They make a palpable impact on your bottom line. Find out how.

  2. A Guide To Investor Fees

    Fees are one of the most important determinants of investment performance and something that every investor should know.

  3. Stop Paying High Mutual Fund Fees

    Discover how investment strategies and expense ratios impact your mutual fund's returns.

  4. Lower Your Fees With Mutual Fund Breakpoints

    The lower the sales charge you pay, the greater your returns. Find out how to cash in.

  5. The Lowdown On No-Load Mutual Funds

    These funds let you cut out the middleman - and the fees.

  6. Women: Invest In Your Financial Literacy

    Learning about money may seem intimidating, but it's not as hard as it looks.

  7. 4 Behavioral Biases And How To Avoid Them

    Here are four common common behavioral biases for traders and how to minimize their effects on your portoflio.

  8. Investing In REITs Instead Of Property

    Learn why this one particular REIT is a better investment than holding physical property in your retirement portfolio.

  9. Mutual Fund Ratings: Crucial or Insignificant?

    Mutual fund ratings can help investors, but they have their drawbacks as well.

  10. Multi-Asset Funds Or Your Own Mix?

    The underlying concept of mixed funds is very appealing. Discover if you're better off with professional management or creating a mixed fund of your own.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center