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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. MERs can range from less than 1% to more than 3%. While you don’t pay these expenses directly, they affect you because they reduce the fund’s returns. This can add up over time.

Learn more about MERs, operating expenses and other costs that may affect your investments. Before you buy a fund, check its MER and performance, and compare them to similar funds. The MER is charged whether or not the fund does well. You may also find investmentreporting.ca useful in learning about the types of reports available to you that provide information about your account performance and fees for certain types of investments.