Total Expense Ratio (TER)

The total expense ratio (TER) is a measure of the cost of owning an investment fund. It is calculated by adding up all of the fund's expenses, including management fees, marketing fees, and other operating costs. The TER is expressed as a percentage of the fund's assets under management (AUM).

For example, if a fund has a TER of 1%, then for every $100 invested in the fund, $1 will be used to pay for the fund's expenses. The TER is an important factor to consider when choosing an investment fund, as it can have a significant impact on your returns over time.

There are a few things to keep in mind when evaluating a fund's TER. First, you should compare the TER to other funds in the same category. This will help you to see if the fund is charging a fair price for its services. Second, you should consider the fund's investment strategy. Funds with more complex strategies tend to have higher TERs. Third, you should consider your own investment goals. If you are looking for a long-term investment, then you may be more willing to pay a higher TER for a fund that has a history of strong performance.

The TER is just one factor to consider when choosing an investment fund. Other factors to consider include the fund's investment strategy, its historical performance, and its risk level. You should also consider your own investment goals and risk tolerance before making a decision.