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I am just starting out to look at investments, etc and I am a bit unclear at how does MER being calculated and charged out of your investment? I think I understand them, but just want to make 100% sure if you guys have your way of explanation about MER calculation and when are they taken out of your money?
 

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I am just starting out to look at investments, etc and I am a bit unclear at how does MER being calculated and charged out of your investment? I think I understand them, but just want to make 100% sure if you guys have your way of explanation about MER calculation and when are they taken out of your money?
MER = Management Fee + Operating Expenses.

MER is charged directly to the fund and is not broken out separately.

Note that MER does not include trading commissions.
 

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No. MER is charged regardless of the value of your investments.
Correct, but it does fluctuate with the value of your investments, which I think is what the OP was getting at.

MERs are typically a % of the value of your holdings. So a 1% MER takes 1% off of your account every year.
 

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Discussion Starter #8
Correct, but it does fluctuate with the value of your investments, which I think is what the OP was getting at.

MERs are typically a % of the value of your holdings. So a 1% MER takes 1% off of your account every year.
How does the above statements differ from mine:
MER is charged annually based on the current market value of the investment
?
 

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Ignore the other replies debating the value since MER is a percentage... what was missed is that MER is calculated and charged daily, not annually.
 
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