Mutual fund fees.....how often taken out??

[dessert]

A fund says it has an expense ratio of .67% so my basic question is "how often do these fees come out of your investments"?
Is it monthly, or daily or something else?

 

[saluki9]

Daily

 

[Retire Soon]

Also, keep in mind that there are also trading costs that are deducted daily that are hidden and not included in the 0.67 %. This is a major reason why it's a good idea to consider index funds, which do very minimal trading.

 

[Eyerishgold]

Also, keep in mind that there are also trading costs that are deducted daily that are hidden and not included in the 0.67 %. This is a major reason why it's a good idea to consider index funds, which do very minimal trading.

ETF's are even better with expense ratio's much lower than most mutual funds. In the case of the iShares S&P 500 Index Fund, ticker IVV, the expense ratio is .09%.

iShares ETF for US investors - Exchange Traded Funds

 

[dessert]

Thanks for the comments. Here is an explanation that I copied from one of my funds:

"For a mutual fund, the expense ratio is the total annual fund or class operating expenses (before waivers or reimbursements) paid by the fund and stated as a percent of the fund's total net assets."

So these fees are "annualized" and that is why on a daily basis I can't even notice them coming out.

I realize that this is a rookie question but I'm sure others will benefit from the information too. Thanks again.

 

[GatorBuzz]

I benefited from it. Thanks for asking the question.