Ans: Here are the differences between gross expense ratio and net expense ratio: Gross Expense Ratio: It is the portion of total mutual fund assets that are used to keep the fund afloat. Examples of gross expense ratios include expenses made on management, advertising, and administration.  Net Expense Ratio: It is the portion of total mutual fund assets used to cater toward the fund’s operating or management expenses. Examples of net expense ratios include waivers, trading costs, and reimbursement.