Mutual Fund Expense Ratio Tips

Video Transcript

"This is financial adviser Patrick Munro, discussing, what are mutual fund expense ratios. Mutual funds are offered by financial institutions, banks, credit unions, and brokerage houses. They're great opportunities for the public to take advantage of investing. But there are expenses that these companies take on in offering these investments to the general public. And therefore, these expense are put forward in the form of an expense ratio, and they are paid first before the investor is paid a return on their money. It's important to work with a brokerage house that keeps their expenses down. Many time people will seek out a discount broker to achieve that goal, as appose to a full service broker. But if I just say there are expenses in offering up these investments, known as mutual funds, and when you put them on the balance sheet, they're called an expense ratio. This is Patrick Munro, discussing, what are expense ratios in mutual funds."