TER (Total Expense Ratio)

The indicator of the mutual fund’s total expense ratio (TER) equals the ratio of the mutual fund’s total operating expenses to the average monthly value of the mutual fund’s equity capital for the previous accounting period. Hence, TER shows how the property in the mutual fund is burdened by all costs, not just the management fee. In funds investing more than 10% of their assets in other funds, also the synthetic TER must be indicated. Synthetic TER equals the sum of the mutual fund’s TER and the TER of each purchased fund in proportion to the investment share in the total mutual fund assets, where the entry and exit fees are added to the TER of the purchased fund.