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a fixed amount (monthly, semi-annually, or annually) known as the account maintenance fee. Sometimes this fee maybe based on the amount invested in the fund. For example, an account with $2,500 or over may not be charged a maintenance fee.

Broker Commission - If you buy and sell your funds through a broker, you will also be charged a broker's commission on each trade which varies from broker to broker. This commission is of course beyond the fund's control. It is between you and your broker who fills your orders.

As you can see, a fund's expense structure is a tricky business and an investor must pay close attention to it as it greatly affects the profit potential of a fund. Many funds, in order to attract new investors or enhance their returns on investments, may alter their expenses from time to time. Some are permanent while others may last for a short time. For example, you might have heard of no-load funds. These funds do not charge front-end or back-end loads. This may sound like a great deal, and sometimes it is, but instead you may get charged with transaction fees or maintenance fees, or they may have higher expense ratios than other funds in their class. Other funds may also waive their expense fees for a while in order to enhance their returns, sort of fudging their numbers for a period of time to show good returns. You should be skeptical about funds that have 0% expense ratios, as sooner or later they need to recover their expenses somehow.

The prospectus and the fund reports are good places to learn about what the fund expenses are. You should study them carefully and make sure you get answers to all of your questions before you invest. A fund's prospectus may also provide a simple example on what the expected total annual expenses would be on an investment of, for instance, $10,000. For example, if the fund's expense ratio is 1% and its returns …