(9) Fund expenses
Fund expenses are so called because they’re paid by the fund, not by you. They affect you because they reduce the fund’s returns.
The management expense ratio (MER) first identified in the Quick Facts section is further explained here.
The trading expense ratio (TER) captures the cost of buying and selling securities within the fund. The more frequently a fund buys and sells securities, typically with the goal of outperforming a certain benchmark index, the higher the TER.
Together, the MER and TER make up the fund expenses.
(10) More about the trailing commission
This section explains the trailing commission in more detail. The trailing commission is often paid by the investment fund manager to the mutual fund dealer, which is the firm that services your account. The dealer pays a portion of the trailing commission to its representative – your financial advisor. The amount of the trailing commission depends on the sales charge option you choose.
Ask your financial advisor to explain the services he or she provides in exchange for this commission.
(11) Other fees
There may be fees other than sales charges associated with your account activities, some of which are intended to discourage short-term trading.
(12) What if I change my mind?
Before you make a purchase, understand what your options are if you change your mind within a certain time frame.
(13) For more information
Your financial advisor is likely your primary resource for questions you may have about your investments. After all, your advisor is the one most familiar with your financial situation. You have other resources as well, some of which are identified in this section.