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.
All mutual funds pay a certain portion of their assets to management, which vary according to the class and the industry of the fund. The expense ratio is a way to evaluate this factor, and those using it benefit from learning the difference between a net expense ratio and a weighted average expense ratio. Other People Are Reading.