When does MER get deducted from Mutual Funds?
Is it done on an ongoing basis? Or does it all get deducted when I withdrawl? I'm just wondering if my current account balance is my "real balance".
Sep 2nd, 2007 2:58 am
Sep 2nd, 2007 3:42 am
Sep 2nd, 2007 3:55 am
It gets deducted yearly (not at withdrawal) but I don't know whether there is a particular day where suddenly your value goes down 2% or if it's a kind of continuous withdrawal. Maybe some eone else knows.
Sep 2nd, 2007 6:19 am
As I said up-thread, the accrual is daily. Otherwise, somebody who wants to buy into the fund might be paying too little, or too much for the management fees of the fund.
Sep 2nd, 2007 2:21 pm
You say it's accrued daily, is it also deducted daily?
Sep 2nd, 2007 2:59 pm
Sep 2nd, 2007 9:03 pm
Sep 2nd, 2007 9:28 pm
correct, this is the accrual activity that pitz mentioned. it's irrelevant how often the mgmt fee is actually paid as the daily mgmt fee accrual is the only thing that affects the NAV of the fund.