What is the relationship between AUM and expense ratio in mutual funds? Option: Higher AUM generally leads to a higher expense ratio, There is no direct relationship between AUM and expense ratio, Higher AUM typically results in a lower expense ratio, Expense ratio is always fixed regardless of AUM

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What is the relationship between AUM and expense ratio in mutual funds?

Higher AUM generally leads to a higher expense ratio

There is no direct relationship between AUM and expense ratio

Higher AUM typically results in a lower expense ratio

Expense ratio is always fixed regardless of AUM

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What kind of relationship exists between the size of a mutual fund and its expense ratio?

Indirect

Inverse

No relationship

Direct

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How does the expense ratio differ between Direct and Regular Mutual Funds?

Direct Funds have a higher expense ratio

Regular Funds have a higher expense ratio

Expense ratio is not applicable to Mutual Funds

Both have the same expense ratio

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How does a large AUM potentially impact a mutual fund's performance?

It guarantees lower expense ratios for investors

It has no significant impact on the fund's performance

It always leads to higher returns due to economies of scale

It may limit investment flexibility and make it harder to achieve high returns

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According to the article, what impact does the expense ratio have on the Net Asset Value (NAV) of a mutual fund?

"Expense ratios have a negligible impact on NAV over the long term."

"Regular plans consistently have a higher NAV due to higher returns."

"NAV is determined solely by market performance, regardless of expense ratios."

"Direct plans tend to have a higher NAV due to lower expense ratios."

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What is the expense ratio in mutual fund investing?

The tax liability on fund distributions

The risk associated with the investment

The return generated by the fund

The cost of managing the fund, including fees and expenses