Typically speaking, the MER does not charge anything directly out of pocket. Instead, they reduce the return of the investment by the amount of the MER.
MER = Management Fee + Operating Expenses.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?
https://www.ific.ca/Content/Content.aspx?id=1436I 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?
Correct, but it does fluctuate with the value of your investments, which I think is what the OP was getting at.No. MER is charged regardless of the value of your investments.
How does the above statements differ from mine: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.
?MER is charged annually based on the current market value of the investment