Total Expense Ratio (TER)

The Total Expense Ratio (TER) is the measure of the total cost associated with managing an investment fund. It is expressed as a percentage of the fund's total assets and includes all operating costs incurred by the fund manager.

For example, if a fund has a TER of 1%, it means that for every $100 invested, the fund manager will charge $1 as a fee.

TER is calculated by dividing the total annual operating expenses of the fund by the total net asset value of the fund.

TER is an important measure for investors to consider when comparing different funds as it allows them to assess the cost associated with a fund before investing.