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Finance Dictionary and Glossary of Investment Terms
Expense Projections (3-, 5-, and 10-Year)
These figures (from a mutual fund''s prospectus) show how much an investor would expect to pay in expenses -- sales charges and fees -- over the next three, five, and 10 years, assuming a $1,000 investment that grows by 5% per year with redemption at the end of each time period. Expense projections are commonly based on the past year''s incurred fees or an estimate of the current fiscal year''s fees, should a portion of the overall fee structure change as of the printing of the fund''s most current prospectus. Newer funds are only required to print expense projections for one- and three-year time periods since longer-term projections may not be possible.