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Do you want the gross expense ratio to be small or large when investing?
Wiki User
∙ 11y ago
i will definitely need it to be as small as possible since it will determine actual amount of net expenses i must pay.also in the short term i might not have enough cash for such expenses
Wiki User
∙ 11y ago
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What is the difference between gross expense ratio and net expense ratio?
Net Expense RatioThe net expense ratio is the expense ratio of the fund after applicable expense waivers or reimbursements. This is the actual expense ratio that investors paid during the fund?s most recent fiscal year. Gross Expense RatioThe gross expense ratio is the fund's total annual operating expense ratio. It is gross of any fee waivers or expense reimbursements. Why are these fees waived? In the case of funds with smaller assets, the gross total expense ratios may be much higher than net total expense ratios. This is true because certain fixed costs, such as legal and custodian fees, have a disproportionate impact on the expense ratio of a smaller fund in comparison to a larger fund. Mutual fund families also may choose to waiver fees to make the pricing of a fund more competitive. What types of expenses are included in the gross and net expense ratios? There is no difference in the types of expenses within a gross or net expense ratio. The net expense ratio is simply the gross expense ratio of a fund less any waivers or reimbursements. What caused the need for reporting both the gross expense ratio? Were there abuses of some sort going on? While there are no specific abuses of which we are aware, there is the potential that a fund family can discontinue a fee waiver without a shareholder vote. The NASD thought it was important that investors be aware of the potential gross expense ratio, in addition to the actual net expense ratio that investors paid. Ultimately this will not affect your investments or cause any reason for change. This is more or less a new reporting requirement that is put in place to provide as much objective information regarding a mutual fund as possible. You will still primarily be concerned with the net expense ratio since that is what will determine your real return, but you will begin to notice this additional number being reported on investment materials and online.
Can Nationwide charge a net asset fee and a gross expense ratio percent as both are listed on the Fund Performance pages?
Yes, for a small co 401k
How do you calculate gross margin ratio?
gross margin ratio is calculated as >GROSS PROFIT/NET SALES
Where is gross profit ratio found?
[Gross Profit Ratio = (Gross profit / Net sales) × 100]
How calculate expense-to-sales ratio?
sales to expense ratio should be under 10% of your net sales, on a monthly basis
What is a spread ratio?
Spread Ratio: Interest Earned / Interest Expense
What is spread ratio?
Spread Ratio: Interest Earned / Interest Expense
What is the average expense to sales ratio for a sales representative?
The average expense to sales ratio for Pharmaceutical sales representative is around 8 to 12 % in Pakistan
How To Understand A Mutual Fund’s Expense Ratio?
When investing in mutual funds, you'll undoubtedly hear a lot about a fund's expense ratio. Everybody will tell you that you should look for a fund with a low expense ratio but not all expense ratios are created equal. There are several components that go into the fund's final expense ratio and some of them may affect you differently. The largest component of an expense ratio is the fee that's paid to the fund's managers. They're managing your money for you and they need to be paid for it. Even with an index fund there is periodic portfolio rebalancing and managing the fund's cash position that requires a fee. In addition, the expense ratio may include an additional fee that covers things such as recordkeeping, account maintenance and legal fees incurred by the fund. Although typically a much smaller percentage than the core management fee, this fee should be broken down in the fund's prospectus as well. Finally, you may see mention of a 12b-1 fee. This is a marketing expense a fund can assess for promotion and advertisement and can be charged back to the fund's shareholders. These three pieces together typically comprise a fund's complete expense ratio. It's worth noting the additional fees that typically do not fall under a fund's expense ratio. Account maintenance fees – annual fees typically charged to lower balance accounts – fall outside of the expense ratio. Sales loads – a percentage that a broker typically charges you to buy or sell mutual fund shares – come in addition to the fund's expense ratio. Trading fees such as early redemption fees don't count in the fund's expense ratio either. While a fund's expense ratio will in most cases comprise the biggest portion of expense you'll pay, the bottom line is that you have to understand all potential fees and charges that go into mutual fund ownership. Keep aiming for funds with low overall fees and expenses and you'll end up with more money in your pocket.
Gross profit ratio has been increased in first year and gross profit ratio has been decreased in second year then what is the financial position of the company?
This would completely depend on how far the gross profit ratio decreased in the second year compared to the ratio at the start of the year.
How do you culculate the gross spread ratio of a bank?
Gross Spread for Banks = (Net Markup Income/Gross Income)
What is gross profit ratio and its purpose?
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