Ch.7 · Total Expense Ratio Limits · medium
What are the maximum TER limits for debt schemes compared to equity schemes?
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EXPLANATION
Debt scheme TER limits are lower than equity at each AUM slab — reflecting lower management costs and distributor margins in debt vs equity. The maximum for debt is 2.00% for first ₹500 crore (vs 2.25% for equity), stepping down similarly as AUM increases. Liquid and overnight funds have the lowest TER limits among all categories.
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