Expense Ratio of a Mutual Fund

This video discusses the various costs that are included in the expense ratio of a mutual fund. The expense ratio typically consists of a management fee (to pay the fund manager), operating expenses (to cover administrative costs such as mailing statements and accounting for the fund), and 12b-1 fees (to promote/advertise the fund). These expenses occur on an ongoing basis and are distinct from the one-time fees associated with a "load."
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[@insertname8511]

Can I possibly get your opinion on fidelity's zero funds? They have no expense ratio which seems fishy to me. There's 4 of them; one that tracks the s and p, one that tracks the total stock market, one that tracks international, and one that tracks bonds. They sound great but there relatively new. Should I be concerned to buy?

[@radkonpsygami7634]

Are there some expenses which are not calculated into the expense ratio (ex: initial fee, additional management or management fees which might not be calculated into this percentage)? Also, how do initial fees work? If I initially, first year put in $2000 will I get charged a percentage fee on that only? . . .or will I be also charged this initial fee by putting in further funds into a stock in the future?

[@jonathanbub3364]

What if a fund has a much higher expense ration however its return is higher much higher. Is it as easy as subtracting the difference?

[@enufots4621]

So, what accounts for the difference between a Gross Expense Ratio and a Net Expense Ratio? Also, if a prospectus lists Expense Ratios, Management fees, and 12b-1 fees...am i to understand that the Expense Ratio is the total expense and not to add up all the various expenses up?

[@HidetoraToujou]

Do you only get charged the expense ratio if you hold for 365 days? What if you sell on day 360?

[@fernandoarrue87]

Expense ratios are factored into the fund on a monthly or quarterly basis as the mutual fund company withdraws its fees from the managed account. This gets factored into that day's Net Asset Value performance, so instead of your fund being flat one day, it is down slightly, for example.