COMPARING EXPENSE RATIOS OF MUTUAL FUNDS
The expense ratio of a mutual fund is its total expenses (salaries,
office and equipment, marketing, etc.) divided by the total value of the fund's
investments. Now that you have read about expense ratios, their general ranges
and ramifications, you may want to read a few prospectuses to learn more.
Another information source is the SEC Web site at www.sec.gov,
which offers a mutual fund cost calculator at http://www.sec.gov/investor/tools/mfcc/mfcc-int.htm
to help you compare one fund with another.
Finally, you may want to read additional tutorials on other
mutual fund topics. Click here to learn even more about this topic with the Encyclopedia of Personal Finance™