Total Annual Fund Operating Expenses

AAA

DEFINITION of 'Total Annual Fund Operating Expenses'

For a mutual fund or other type of fund management structure, the aggregate of the funds operating costs. Total annual fund operating expenses illustrates the total costs incurred by the fund itself over the course of a year in operating and running the fund. Such expenses would include the management fee and distribution fee.

INVESTOPEDIA EXPLAINS 'Total Annual Fund Operating Expenses'

A fund's total annual fund operating expenses is a requirement by the SEC for all mutual and exchange-traded funds on their respective prospectus documents. By clearly laying out the expenses a fund must cover in order to simply continue operations, potential investors can decide whether they want to invest in a firm which incurs a level of expenses, which typically presented as a percentage of average net assets.

RELATED TERMS
  1. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  2. Index Fund

    A type of mutual fund with a portfolio constructed to match or ...
  3. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  4. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  5. ETF Sponsor

    The company or financial institution which creates and administers ...
  6. Bear Fund

    A mutual fund designed to provide higher returns when the market ...
Related Articles
  1. Dollar-Cost Averaging With ETFs
    Mutual Funds & ETFs

    Dollar-Cost Averaging With ETFs

  2. The Hidden Costs Of Investing In Mutual ...
    Retirement

    The Hidden Costs Of Investing In Mutual ...

  3. Stop Paying High Mutual Fund Fees
    Mutual Funds & ETFs

    Stop Paying High Mutual Fund Fees

  4. Falling Giant: A Case Study Of AIG
    Insurance

    Falling Giant: A Case Study Of AIG

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. 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 ...
  5. Pareto Principle

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

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