How do management fees affect the money invested in a mutual fund

Question

On mutual fund brochures, they state a management fee and also a MER.

How to interpret these two numbers? For example, if management fee is 1% and MER is 2%, then for an investment of 100$, does it mean only 97$ (100 - 3) are actually invested and the rest goes to the money manager?

Answer 1

The management expense ratio (MER) is the management fee, plus all of the other costs required to run the fund, excluding any trading costs.

Here's a pretty good explanation.