Ch.7 · Total Expense Ratio Limits · medium
What costs can legitimately be included in the TER of a mutual fund scheme?
0% of students got this wrong
EXPLANATION
SEBI prescribes what can be charged to the scheme within TER: investment management and advisory fees, marketing/distribution expenses (capped component), brokerage on portfolio transactions, custodian fees, RTA fees, audit fees, trustee fees, and investor education expenses (0.02% mandatory). Costs like penalties/fines, AMC's own overhead, and legal costs for AMC-level disputes cannot be charged to the scheme.
Practising Chapter 7 one question at a time?
Try the full chapter — 80 questions, tracked score, weak area breakdown.