"A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual calculation, where a fund's operating expenses are divided by the average dollar value of its assets under management. Operating expenses are taken out of a fund's assets and lower the return to a fund's investors."
"Preservation" generally refers to a goal of the fund, e.g. to preserve the capital value - the principal you have invested - i.e. no large fluctuations in the VALUE of the fund. These types of funds generally throw off income in the form of dividends and/or interest, but you wouldn't expect to see any significant capital gains or losses. They also typically have low returns...low risk = low return. Hope this helps...
I am looking at fund analysis and the Lipper ratings. I understand "Total return" "Consistent return" and I assume "Expense" means how much it costs for an investor to invest in the fund. But what does the "preservation" of a fund mean?
