An example explanation ...
I believe they:
the fund has "one big bank account" with all the/any cash and obviously "one big holding" of the various stocks
they calculate/decide on the current annual expenses. for example 5 staff members, 13 desk rentals, electricity bill, total ...
Suppose a fund has an expense ratio of 0.055%, as I understand it that
means $55 per $1000.
If the expense ratio is stated as 0.055% that is actually around 5 hundredths of 1% of the total amount invested.
1000*0.055/100 = $0.55 per thousand.
Where do the expenses come from? Is every purchase of the fund reduced
by 0.055%? So if a fund has a cost of $100/...
If you are in the United States and you are talking about "open-end" investment companies, then there are two things that could stop this.
The first one is that some funds place contractual restrictions on how often you are allowed to trade, they may waive that or partially waive it if you move the money inside the fund family. They may also ...
Day trading mutual funds has its downsides, like the redemption time being only once per day at close of market, for one, and likely penalties for trading them too often.
However, ETFs (exchange traded funds) are a different story.
In fact, many many day traders focus entirely on the SPY ETF, which is the most liquid security in the world by far.
2nd most ...