The fund’s management fee and operating expenses make up a fund’s management expense ratio or MER. They are paid by the fund, and are expressed as an annual percentage of the total value of the fund. While you don’t pay these expenses directly, they affect you because they reduce the fund’s returns. The MER is charged whether or not the fund does well, and is based on the average value of the fund.
The fund sets how often the fee is taken from returns – this could be as often as daily. Learn more about mutual fund fees.