Annual fund operating expenses

Annual fund operating expenses

For investment companies, the management fee and "other expenses," including the expenses for maintaining shareholder records, providing shareholders with financial statements, and providing custodial and accounting services. For 12b-1 funds, selling and marketing costs are also included.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Annual Fund Operating Expenses

The cost that a mutual fund or other investment company incurs for maintaining proper records, printing financial statements, and otherwise maintaining operations. Annual fund operating expenses sometimes include marketing costs as well. Most investment companies assess a fee to cover these expenses. This fee is separate and distinct from the load (or sales fee). See also: Management fee.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved