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Ch.6 · Distributor Commission Structure · hard

What is the TER limit for a debt scheme with AUM up to ₹500 crore as per SEBI regulations?

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EXPLANATION

For debt schemes with AUM up to ₹500 crore, the maximum TER is 2.00% as per SEBI's revised TER regulations effective April 2019. Debt scheme TER limits are lower than equity scheme limits at each AUM slab, reflecting lower management intensity and distributor margins in debt funds.

A.2.25%

B.2.00% [✓ Correct]

C.1.50%

D.1.00%

EXPLANATION

For debt schemes with AUM up to ₹500 crore, the maximum TER is 2.00% as per SEBI's revised TER regulations effective April 2019. Debt scheme TER limits are lower than equity scheme limits at each AUM slab, reflecting lower management intensity and distributor margins in debt funds.

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