From my understanding if an MER is 1% and the fund earns me 10%, then technically I only made 9% and I had to pay 1/10 \* 100 =10 % of my return. But what if the fund only earned me 1%? Would I essentially pay 100% of my return? I feel like there is NO risk nor benefit to the fund manager once you are locked in as they should theoretically always get their 1% whether it performs or not. It is strictly just sales at that point.
My brain is also been fried lately and may be burning out in this economy so if my math is way off or I’m not understanding pls forgive me lol