Total Expense Ratio(TER)

[Chevron]

I read somewhere that looking at TER is a good way to compare fees on different investments.

I'm considering starting contributions to another fund that has a TER of 1.99.

Is this good or bad?

 

[agentrfr]

Depends on what your return are like.

Eg: You have some investment that grows by 7 % in a year, and TER is 4%. At the end of the day you are left with 3% (more or less) profit for yourself.

 

[Chevron]

Depends on what your return are like.

Eg: You have some investment that grows by 7 % in a year, and TER is 4%. At the end of the day you are left with 3% (more or less) profit for yourself.

Well this is high risk, but past history shows returns of 20%.

 

[Paul_S]

Depends on what your return are like.

TER of 1.99% isn't too bad if the investment is growing at over 15% per annum.

Eg: You have some investment that grows by 7 % in a year, and TER is 4%. At the end of the day you are left with 3% (more or less) profit for yourself.

That better be 7% after taking inflation into account otherwise it doesn't deserve to be called an investment.

I have some money in Allan Gray Equity Fund and it's TER is 2.51% which seems rather high.
However the returns are also high. 18% growth over the past 6 months is pretty decent.