Hi All... just a couple of questions about MERs.
If a MER on a fund is 2%, on what basis is it calculated? Is it removed from the amount invested, or the return amount?
My basic understanding is that the MER % is removed from the return before the investor receives the return (ie., if the return was 8%, and the MER is 2%, the investor receives the 6% return back). Is this the case? If so, what if there was no return (or the fund lost money that year), how is a MER% calculated?
Thanks in advance.