# Mer



## CuriousReader (Apr 3, 2009)

I am just starting out to look at investments, etc and I am a bit unclear at how does MER being calculated and charged out of your investment? I think I understand them, but just want to make 100% sure if you guys have your way of explanation about MER calculation and when are they taken out of your money?


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## FrugalTrader (Oct 13, 2008)

Typically speaking, the MER does not charge anything directly out of pocket. Instead, they reduce the return of the investment by the amount of the MER.


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## CanadianCapitalist (Mar 31, 2009)

CuriousReader said:


> I am just starting out to look at investments, etc and I am a bit unclear at how does MER being calculated and charged out of your investment? I think I understand them, but just want to make 100% sure if you guys have your way of explanation about MER calculation and when are they taken out of your money?


MER = Management Fee + Operating Expenses.

MER is charged directly to the fund and is not broken out separately.

Note that MER does not include trading commissions.


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## CuriousReader (Apr 3, 2009)

but MER is charged annually based on the current market value of the investment?


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## Cal (Jun 17, 2009)

No. MER is charged regardless of the value of your investments.


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## Rickson9 (Apr 9, 2009)

CuriousReader said:


> I am just starting out to look at investments, etc and I am a bit unclear at how does MER being calculated and charged out of your investment? I think I understand them, but just want to make 100% sure if you guys have your way of explanation about MER calculation and when are they taken out of your money?


https://www.ific.ca/Content/Content.aspx?id=1436


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## canehdianman (Apr 7, 2009)

Cal said:


> No. MER is charged regardless of the value of your investments.


Correct, but it does fluctuate with the value of your investments, which I think is what the OP was getting at.

MERs are typically a % of the value of your holdings. So a 1% MER takes 1% off of your account every year.


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## CuriousReader (Apr 3, 2009)

canehdianman said:


> Correct, but it does fluctuate with the value of your investments, which I think is what the OP was getting at.
> 
> MERs are typically a % of the value of your holdings. So a 1% MER takes 1% off of your account every year.


How does the above statements differ from mine:


> MER is charged annually based on the current market value of the investment


?


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## mogul777 (Jun 2, 2009)

Ignore the other replies debating the value since MER is a percentage... what was missed is that MER is calculated and charged daily, not annually.


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