MER (Management Expense Ratio)
The annual cost of managing a fund, expressed as a percentage of your investment.
Last reviewed June 15, 2026
Reviewed for accuracy and clarity by Sandeep Singh before publication. Learn about our editorial process.
What it means
The Management Expense Ratio is the annual cost of operating a fund — covering management, administration, and other expenses — expressed as a percentage of the total amount invested. It's deducted automatically; you won't see a separate bill for it.
Why it matters
Even small differences in MER compound significantly over decades, so it's one of the most important numbers to understand before choosing between investment products.
Common misunderstandings
- It's not a one-time fee — it's charged every year, for as long as you hold the fund.
- A higher MER doesn't automatically mean better performance or better guarantees.
Where you'll see it
On every fund fact sheet, and in any comparison between investment products.
Related terms
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