Costs · Question 6 of 12
What do the ongoing charges (often called TER) of a fund indicate?
1 answer is correct. Easy
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Answer
- B The annual costs of managing and running the fund
Explanation
Ongoing charges are deducted from the fund's assets and reduce the return every year. For many index ETFs they are well below 0.5%, for active funds often above. Transaction costs within the fund are usually not included.