Welcome back. This is another installment of our surprisingly exciting hit series where I define an investment or money word I have come across in my daily dealings here at brass. 
This week, we'll be looking at expense ratios, as I saw on iwillteachyoutoberich.com.
I discovered that an expense ratio is the operating cost, given as a percentage, of a particular mutual fund. An "operating cost" is basically the money it takes to maintain the fund (like overhead for running a business). The operating costs are taken out of the fund's assets, thereby lowering the return to the investors in the fund.
In short, higher expense ratios does not mean higher returns -- you'll definitely want to know how high those ratios are before you invest in a fund, because they cut into your profits.
Questions? Answers? Let us know what you think about expense ratios or what your experience with them has shown you. Until next week...
- Jeremy
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