Total expense ratio2/24/2023 Such changes are not considered as change in Base TER for the purpose of the SEBI circular no. The total cost of this is then divided by. The above disclosed base TER and GST on management fee vary from the actual TER charged, on account of AUM movement, statutary reversal of management fees in case of investment in bank fixed deposits/AMC investments/investment made by other schemes of the fund, rounding off, etc. The total expense ratio of a fund measures the total costs that come with managing and operating an investment. Base TER of direct plan shall have a lower expense ratio excluding distribution expenses, commission, etc., and no commission shall be paid from such plans.ħ. Percentages mentioned above are annualized.Ħ. These costs consist primarily of management fees and additional expenses, such. All this falls into a single basket called total. From Investopedia: The total expense ratio (TER) is a measure of the total costs associated with managing and operating an investment fund, such as a mutual fund. This includes the fund management fee, agent commissions, registrar fees, and selling and promoting expenses. Additional Expenses not exceeding 0.05% (0.20% till 1st June, 2018) in terms of Regulation 52(6A)(c) of SEBI (Mutual Funds) Regulations, 1996.ĥ. The Total Expense Ratio (TER) is the annual cost an investor pays while having an investment in a fund. Additional Expenses not exceeding 0.30% in terms of Regulation 52(6A)(b) of SEBI (Mutual Funds) Regulations, 1996.ģ. In other words, measures the percentage of your investment in the fund that goes to paying management fees by comparing the mutual fund management fees with your total assets in the fund. Base TER excludes additional expenses provided in Regulation 52(6A)(b) and 52(6A)(c) of SEBI (Mutual Funds) Regulations, 1996.Ģ. Definition: The expense ratio is an efficiency ratio that calculates management expenses as a percentage of total funds invested in a mutual fund.
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