How are expense ratios calculated on mutual funds? The expense ratio for a fund is calculated by dividing the total amount of fund fees—both management fees and operating expenses—by the total value of the fund’s assets. … Thus, the small 1% difference in expense ratios translates to a whopping 10% difference in net profits.
What is a good expense ratio on a mutual fund? A good expense ratio, from the investor’s viewpoint, is around 0.5% to 0.75% for an actively managed portfolio. An expense ratio greater than 1.5% is considered high. The expense ratio for mutual funds is typically higher than expense ratios for ETFs. 2 This is because ETFs are passively managed.
How is the expense ratio charged? When you buy a fund, the expense ratio is automatically deducted from your returns. When you view the daily net asset value (NAV) or price for an index fund or ETF, the fund’s expense ratio is baked into the number you see.
What car can I afford with 50k salary? Dave Ramsey takes a balance sheet approach. Rather than looking at monthly transportation costs, Dave recommends buying cars that cost no more than 50% of your annual income. So if you make $50,000 a year, you should not spend more than $25,000 for a car(s).
How are expense ratios calculated on mutual funds? – Related Questions
Why is creed perfume expensive?
One of the reasons Creed cologne is so expensive is that it’s entirely handmade. Many fragrance manufacturers use machines to harvest and mix their essential oils and other ingredients to create the scent. Creed doesn’t. … However, because it’s handmade, the production of their cologne and perfumes is slower.
Why is gas so expensive in ontario?
Gas price analyst Dan McTeague, president of Canadians for Affordable Energy, said the recent jump in the price of oil has translated into higher prices at the gas pumps. He said the Canadian dollar has not kept pace as it has in the past.
Can you claim adoption expenses year after adoption finalized?
Parents who are adopting from the U.S. and claiming qualified adoption expenses can claim the credit the year of finalization or the year after they spent the funds. … The parents must claim the $4,000 spent in 2019 on their 2020 taxes. They cannot claim the $5,000 and $3,000 until they file their 2021 taxes.
How should i present mileage expense to irs for audit?
Regardless of the circumstances of your employment, you will likely be asked to record the following: “the mileage for each business use” “the total mileage for the year” the time (date will do), place (your destination), and purpose.
Why is hiv medicine so expensive?
Certain prices of HIV drugs may be high and difficult to afford due to patent barriers on antiretroviral drugs and slow regulatory approval for drugs, which may lead to indirect consequences such as greater HIV drug resistance and an increased number of opportunistic infections.
How expensive is it in rome?
The average price of a 7-day trip to Rome is $1,121 for a solo traveler, $2,013 for a couple, and $3,774 for a family of 4. Rome hotels range from $74 to $388 per night with an average of $111, while most vacation rentals will cost $210 to $490 per night for the entire home.
Why are eggs so expensive 2016?
Blame coronavirus demand. Egg prices increased across the nation as shoppers rushed to grocery stores to stock up. As stay-at-home orders swept across the country, shoppers rushed to grocery stores and stocked up on staples, among them eggs.
Why is fillet steak so expensive?
The number of cows needed is a huge reason that the pricing of filet mignon is so expensive. Each cow processed still takes just as much time and labor to raise, yet only 8% of it is going to produce the filet mignon.
Are electric stoves more expensive than gas?
Gas and electric ranges are very similar in price. They are usually around $700–$1700. … Utility costs are different in every state, but on average, a gas stove is 10–30 percent cheaper to operate than an electric stove. While the operation is cheaper, gas stoves use more energy.
Why bmw are so expensive?
The principal reasons behind BMW’s high cost are their design and build. Like most German brands, BMW cars are designed for luxury, elegance, and performance. Their build quality, safety, comfort, refined engines, as well as their position as premium products all contribute to their huge price tags.
Do you close bad debt expense?
If you charge an estimated amount of accounts receivable to bad debt expense in the same period when you record related revenue, then debit the Bad Debt expense for the amount of the estimated write-off, and credit the Allowance for Doubtful Accounts contra account for the same amount.
Why are engagement rings so expensive vs online store?
In most cases, engagement rings are 30-40% cheaper online than they are in physical stores. Because of the way diamonds are sold and distributed, diamonds are less expensive for online vendors. By shopping online, you’ll get a large selection of conflict-free diamonds and beautiful settings at competitive prices.
Who has the most expensive car in bollywood?
1. Shahrukh Khan. Shahrukh Khan has the most expensive car among Bollywood celebrities and its price will make you shocked.
Why is london property so expensive?
The consequence of this growing demand compared to limited growth in supply, is that there is strong economic pressure on house prices. UK Housing market has often seen demand increase at a faster rate than supply, causing price to rise. … This excess housing stock dragged down prices.
What is the most expensive form of additional capital?
Common stock generally is considered the most expensive source of capital, as companies often use it to fund their most risky investments, and investors use it to obtain the highest investment returns.
Why are cigarettes so expensive in uk?
Excise duty. In the UK, excise duty is added to retail price of all tobacco products. The excise duty for cigarettes is by volume. And by cigars the duty is by weight.
How expensive is one process color?
The average, mid-range salon in the U.S. charges $50-$70 for a single process hair color. Chain salons like Supercuts start at about $35+ for all-over color. Higher-end salons charge anywhere from $100+ for this.
What is included in the interest expense?
Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any borrowings – bonds, loans, convertible debt or lines of credit. It is essentially calculated as the interest rate times the outstanding principal amount of the debt.
When should we recognize bad debt expense?
A bad debt expense is recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems.