Simple explanation
Lower fees can meaningfully improve long-term returns, especially over multi-year investing horizons.
Expense Ratio Meaning in Personal Finance
The annual fee charged by a fund as a percentage of invested assets.
Expense Ratio
The annual fee charged by a fund as a percentage of invested assets.
Related Terms
Asset Allocation
How your money is divided across different asset types like cash, equities, and bonds.
Compound Interest
Interest earned on both the original amount and previously earned interest.
Diversification
A strategy for reducing risk by spreading money across different assets or sectors.
Emergency Fund
A dedicated cash buffer for unexpected expenses or temporary income disruption.