Ch.7 · Total Expense Ratio Limits · medium
What additional TER is permitted for inflows from B-30 cities?
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EXPLANATION
SEBI allows AMCs to charge an additional TER of up to 0.30% per annum on the AUM from B-30 (beyond top 30) cities. This additional charge is meant to incentivise distributors to expand reach to smaller cities — the additional TER revenue is shared with distributors as higher trail commission. The 0.30% is over and above the regular TER limit.
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