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responding to inquiries or providing information on the fund. Sometimes the service fee is broken out as a separate item or it may simply be referred to as other expenses. As an example, a fund with a 1% expense ratio would deduct $100 for an account that is worth $10,000 for the current year. If the account is worth $15,000 next year, the account would be charged $150 for that year, and so on. It should be noted that expense ratios are normally not constant. They change from time to time as the fund goes through changes of its own. For example, as the fund's net assets grows, investors may notice a declining expense ratio as there are more shares to distribute the costs amongst.