what is the total expense ratio ter 
the total expense ratio ter is a measure of the total costs associated with managing and operating an investment fund such as a mutual fund these costs consist primarily of management fees and additional expenses such as trading fees legal fees auditor fees and other operational expenses the total cost of the fund is divided by the fund s total assets to arrive at a percentage amount which represents the ter the ter is also known as the net expense ratio or after reimbursement expense ratio 