What is the average expense ratio for equity mutual funds?

An expense ratio refers to an efficiency ratio that computes annual fee charged on funds invested in a mutual fund. A mutual fund is a skillfully operated investment plan funded by investors with the aim of trading in diversified securities such as bonds and stocks. In that connection, an equity fund is a mutual fund that invests primarily in stocks (Schell, 2018). Expense ratio gives the percentage of shareholder’s investment in the fund used to meet the management expenses by comparing the fund’s management costs with the investor’s overall assets in the fund (Schell, 2018). Over time, mutual fund investors have encountered substantial decline in average expense ratios. In the year 2000, for example…