Expense Ratio

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Expense ratio, abbreviated as ER, a dimensionless number, is the measures the expense incured to manage the fund as a porportion of the total investment.

 

expense ratio Formula

\(\large{ ER = \frac{ MF }{ TI }  }\)   

Where:

\(\large{ ER }\) = expense ratio

\(\large{ MF }\) = management fees

\(\large{ TI }\) = total investment in the fund

 

Tags: Equations for Manufacturing