Mutual fund expenses refers to those fees that are charged by mutual funds from investors who hold mutual funds. Here is the list of some of the fees or expense that mutual funds charge from the holders of mutual funds units –
1. Management or Maintenance expense – It refers to that fees which is paid out of fund assets to the fund’s investment adviser for the portfolio management of the fund, it is also called maintenance fees.
2. Purchase expense – It is a type of fee that funds charge their shareholders when they buy shares.
3. Redemption expense – It is a fee which funds charge when the investor sells or redeem their units.
4. Exchange expense – It is that fee which mutual funds impose on shareholders if they exchange their holdings from one fund to another fund within the same fund group.
Apart from above a fund can charge other fess also depending on the nature and objectives of the mutual fund.