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. Steve Cohen

    A trading magnate also referred to as the Hedge Fund King and ...
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. ChartAdvsor for October 24, 2014
    Chart Advisor

    ChartAdvsor for October 24, 2014

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