The Management Expense Ratio (MER) is the fee the investment company charges to
operate a mutual fund. The operating expenses vary from fund to fund, and are taken
out of the fund assets, which lower the returns for individual investors. One component
of the MER is the trailer fee (or trailing commission), which can amount to up to
1% or more of the total value of a mutual fund portfolio.
Note: Canadian mutual fund fees have been reported as the highest in the world.
The original study which evaluated fees is available
here. For an analysis of the study, please go
here.