A short YouTube video (speaker: Ndubuisi 'Andy' Egwim) that explains Total Expense Ratio (TER) for investment funds. The speaker defines TER, warns that a high TER reduces investors' returns because it covers higher management costs, and emphasizes the simple rule: low TER is good, high TER is bad. He also prompts listeners to check whether a fund is accumulating or distributive.
Remember is low T are good, high T are bad, and do you understand whether it's accumulating or distributive? So that's very useful. Understanding the differences is really quite good. So there's TR stands for total expense ratio, and a high TR means that a significant portion of that investment fund's return is used to cover the cost of managing the fund. Essentially means that the investor pays a relatively large fee compared to the total asset value, which is generally considered undesirable at its reduces potential returns. So you just want to remember is low TR good, high T are bad.
