How do fees affect returns on my mutual fund?

These fees appear on the prospectus under the heading “Annual Fund Operating Expenses.” The expense ratio varies from fund to fund, but is typically composed of the following fees: Hiring Costs – Also known as the management fee, this cost is usually between 0.5% and 2% of assets on average.

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Agree with the answer of our colleague's Sridhar Krish.

Fees charged to investors to cover operating costs, expressed as a percentage. The money is deducted from investment returns before they're given to investors. For example, if you had $10,000 invested in a fund with an expense ratio of 0.20%, you'd pay about $20 a year out of your investment returns.