Total expense ratio

The total expense ratio or TER is the percentage of the invested sum that is deducted for annual charges (excluding commissions) by investment funds. The investor does not get any returns on the deducted TER but does on the remaining amount. 

TER is expressed as a percentage of the fund’s daily Nav.

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For an ETF, TER includes management fees, administrative fees, operating fees, legal fees and other costs. However, for an ETF, TER is low compared to actively-managed MFs.