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When reviewing mutual fund performance, do the total returns shown reflect expenses? For example - a fund with 18% annualized return, with a 1% expense ratio - is the fund earning 19%, but 1% of that is lost to the fund management, or is the fund earning 18%, with only 17% going to investors?
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With a 1% ER and an 18% published return the fund grossed 19%.

For more check out this article:
http://news.morningstar.com/news/MS/Investing101/mfexpenses.html

JB
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As jbking said, the published returns are after the expenses have been acounted for.

However, if the funds have sales charges or deferred contingent sales charges, the quoted returns are usually without accounting for those sales charges. (The prospectus should show historic returns both with and without accounting for sales charges--at least the prospectuses of the load funds I have looked at do.)
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