Expense ratio fee for a mutual fund gets charged on a daily basis and post expense deductions, the daily NAV is calculated.
Net Asset Value per Share = (Total assets - Total liabilities - Total expenses) divided by total number of units.
Expense ratio indicated in the fact sheet is for the year and is subtracted from the total asset value to calculate NAV. It is the summation of all yearly expenses made by the mutual fund scheme. The expense ratio includes it’s management charges, operating costs, transfer agent costs, custodian and audit charges, and distribution and marketing expenses.
