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
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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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?
MER is charged directly to the fund and is not broken out separately.
Note that MER does not include trading commissions.
but MER is charged annually based on the current market value of the investment?
No. MER is charged regardless of the value of your investments.
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.
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: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
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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