[CuriousReader]

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?

 

[FrugalTrader]

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.

 

[CanadianCapitalist]

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.

 

[CuriousReader]

but MER is charged annually based on the current market value of the investment?

 

[Cal]

No. MER is charged regardless of the value of your investments.

 

[Rickson9]

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=1436

 

[canehdianman]

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.

 

[CuriousReader]

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

?

 

[mogul777]

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.