Association Funds India Mutual

Association Funds India Mutual

Association Funds India Mutual

A mutual fund consists of a number of stocks and bonds grouped together and managed by one person, the mutual fund manager. These funds help investors diversify their portfolio, with ownership in several stocks and bonds and the guidance of a professional money manager.

This guidance and management comes at a cost, though. Before buying into a back end, front load, or no load mutual fund, understand all of the associated transaction and management fees.

Mutual Fund Management Fees

The Management Expense Ratio, or MER, is the percentage of the value of the fund that goes directly towards its operation. It is important to understand how the MER works. It is not a dollar figure that investors will see subtracted from their return. Rather, the MER value is taken off of the top of the value of the fund, reducing the potential return for all investors.