Ongoing charges (TER)
An annual estimate of costs deducted within a fund, expressed as a percentage of its assets.
Definition
An annual estimate of costs deducted within a fund, expressed as a percentage of its assets.
Why this concept matters
They gradually reduce the performance received by the investor.
How it works
Charges are deducted from the fund's assets and gradually reflected in its value, without a separate bill being sent to the holder.
Calculation guide : Indicative annual cost ≈ amount invested × TER
What to watch
The TER does not necessarily include every trading, brokerage or currency cost.
Simple example
A 0.20% TER represents about €20 a year on €10,000 before market movements.
Example currency : France (EUR). The reference country controls the example currency.
Try the mechanism
Educational estimate only, with no personalised advice or guarantee.Related concepts
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