Costs & Fees
Total Cost of Ownership
Definition
What is Total Cost of Ownership?
The full cost of holding an investmentAn asset or commitment of money made with the expectation of future income, growth, or both., including visible and hidden fees, spreads, taxes, and trading effects.
Example in practice
How This Looks in Practice
The cheapest expense ratioA fund's annual operating expenses expressed as a percentage of its average net assets. is not always the lowest total cost.
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Related Terms
Costs & Fees
Management Fee
The recurring fee paid from fund assets to the fund manager for managing the portfolio.
Costs & FeesExpense Ratio
A fund's annual operating expenses expressed as a percentage of its average net assets.
Costs & FeesEntry Load
A charge deducted when an investor subscribes to a fund.
Plans & OptionsAccumulation Option
A fund option that retains or reinvests income so it contributes to unit-value growth.