What are the two basic accounting equation?
What are the two basic accounting equation?
The formula is very simple: Assets = Liabilities + Owner’s equity.
What are the total expenses?
The total expense ratio (TER) is a measure of the total costs associated with managing and operating an investment fund, such as a mutual fund. These costs consist primarily of management fees and additional expenses, such as trading fees, legal fees, auditor fees, and other operational expenses.
What is a good total expense ratio?
High and Low Ratios 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.
How do you calculate missing expenses?
Determine the net income, if that figure is missing, by subtracting the total expenses from the gross income. For instance, if you have $100,000 gross income and $30,000 expenses, you would subtract 30,000 from 100,000 to get a net income of $70,000.
Does Mer include ter?
The TER is independent of a fund’s MER. It typically does not apply to fixed income transactions since commissions for fixed income funds are already embedded in the price of a bond. The TER aggregates all of the trading costs incurred by a fund over the course of a year and is expressed as a percentage of assets.
What is a good MER fee?
The advisory fee is usually between 1% and 1.5% of your portfolio value per year, with larger portfolios being charged even lower fees. Aim for a “good MER” of 0.25% to 0.75% by investing in ETFs and using a private investment management firm to manage your portfolio.
What is the difference between management fee and MER?
The MER, or Management Expense Ratio, consists of the management fee and all other costs associated with the running of the fund. The management fee is the amount paid to the fund manager to make the investment decisions for the fund. The other costs are items such as administrative costs and custodial fees.
Are management fees and Mer the same?
Often the management fee is used interchangeably with the MER by business publications and financial professionals, but the two are not the same. MER includes many fees, one of which is the management fee. As a result, the MER can often be higher than the management fee.
How are management fees calculated?
Calculate the Fees Calculate the management fee by multiplying the percent with total assets. The standard percentage management fee charged ranges from 0.5 percent to 2 percent per annum. For example, if the fund has $1million in assets and fee charged is 2 percent, $20,000 goes toward your fund management.
How often is Mer paid?
The MER is expressed as a percentage of the fund’s average assets for the year. However, instead of being subtracted annually in one shot, the MER is usually deducted on a daily (prorated) basis and is reflected in the net asset value of the fund.
How do management fees work?
The management fee is the cost of having your assets professionally managed. The fee compensates professional money managers to select securities for a fund’s portfolio and manage it based on the fund’s investment objective. For example, a mutual fund’s management fee could be stated as 0.5% of assets under management.
What is a fair management fee?
“A reasonable fee would be 1% at $1 million down to 0.50% at $10 million and 0.10% thereafter,” says Ryan T. Online advisors have shown that a reasonable fee for money management only is about 0.25% to 0.30% of assets, so if you don’t want advice on anything else, that’s a reasonable fee, O’Donnell says.
What is monthly management fee?
A monthly management fee is single monthly service fee for a fixed number of transactions and services, including the monthly maintenance of your account. Additional fees may apply for extra or unforeseen transactions or if an account is not compliant or kept for its intended use.
Are property management fees negotiable?
Average Property Management Fees for… Property Management Some companies also charge a flat fee, such as $100 per month. Keep in mind that this fee should be negotiable. If they’re managing many properties for you, you may have the leverage to negotiate a discount.
Is hiring a property manager worth it?
Property management isn’t worth the money to some investors. One important note, even if you choose to manage your own properties – it pays to have a backup plan in case you’re no longer able to handle them. For others investing in real estate, there’s no way they’d choose to manage their own rental properties.
What do apartment management fees cover?
Some standard matters covered by the service charge include: insurance for the building (not including contents of your apartment); refuse collection; electricity to the common areas; lift maintenance; maintenance of fire-safety systems; cleaning of the common areas; grounds maintenance; CCTV and security; repairs and …