Comprehensive and Detailed Explanation From Exact Extract:
Factors that increase a mutual fund’s management expense ratio (MER) include investing in foreign equities and paying trailer fees, as these add to operational costs. The feedback from the document states:
"Four factors primarily affect the management expense ratio. Funds that invest in foreign equities; are small in size; are managed by an outside specialist firm; and charge trailer fees will have higher management expense ratios."
[Reference:Chapter 16 – Mutual Fund Fees and ServicesLearning Domain:Evaluating and Selecting Mutual Funds, ]
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