what are the limitations of the total expense ratio ter 
the ter is meant to capture the entire cost that an investor can expect from owning an investment fund however some charges especially those that are either made only once or made from the investment capital may not be included in the ter these include commission stockbroker fees securities transfer tax and annual advisor fees the bottom linethe total expense ratio ter can help an investor measure the costs associated with managing and operating an investment fund this can be a measure of the fund s efficiency and help to see if it s an appropriate investment 