diligent in application or attention; persevering; assiduous. 2. persistently or carefully maintained: sedulous flattery.
DEFINITION of 'Expense Ratio'. A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual calculation, where a fund's operating expenses are divided by the average dollar value of its assets under management. Operating expenses are taken out of a fund's assets and lower the return to a fund's investors. Also known as management expense ratio (MER). Next Up.
Annual-report expense ratios reflect the actual fees charged during a particular fiscal year, while prospectus expense ratios reflect material changes to the expense structure for the current period. Annual Net Expense Ratio. This is the percentage of fund assets paid for operating expenses and management fees.