Ch.7 · Total Expense Ratio Limits · easy
What does TER (Total Expense Ratio) represent in a mutual fund scheme?
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EXPLANATION
TER is the annual cost of running a mutual fund scheme, expressed as a percentage of the scheme's average daily net assets. It covers investment management fees, distributor commissions (in Regular Plan), custodian fees, RTA fees, audit fees, and other permitted expenses. TER is deducted daily from the scheme's NAV — it is an invisible daily charge that reduces the NAV growth investors receive.
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