Ch.6 · ARN and EUIN Rules · medium

How does the B-30 additional TER benefit distributors?

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EXPLANATION

The additional 0.30% TER allowed on B-30 AUM is passed on by AMCs to distributors as higher trail commission for B-30 inflows. This makes distributing mutual funds in smaller cities financially more attractive, incentivising distributors to expand their reach beyond metro cities.

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