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. Note: The annual report expense ratio for a fund of funds is the wrap or sponsor fee only.