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Ch.6 · ARN and EUIN Rules · medium

What is the additional TER allowed for B-30 inflows as per SEBI regulations?

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EXPLANATION

SEBI allows AMCs to charge an additional TER of up to 0.30% per annum on inflows from B-30 (beyond top 30) cities. This additional amount is meant to incentivise distributors and AMCs to expand mutual fund reach to smaller cities. The additional TER applies only to the AUM from B-30 locations.

A.0.10% per annum

B.0.20% per annum

C.0.30% per annum [✓ Correct]

D.0.50% per annum

EXPLANATION

SEBI allows AMCs to charge an additional TER of up to 0.30% per annum on inflows from B-30 (beyond top 30) cities. This additional amount is meant to incentivise distributors and AMCs to expand mutual fund reach to smaller cities. The additional TER applies only to the AUM from B-30 locations.

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