Ter

SEBI has proposed removal of statutory levies like Securities Transaction Tax (STT), GST, etc. to be excluded from Total Expense Ratio (TER) limits.

What Is Total Expense Ratio In A Mutual Fund And How It Is Calculated

Although lower expense ratios help a scheme’s return, that should not be the only criteria for selecting a scheme. Its pedigree, long-term track record, and discipline are more important to ensure consistency and continuity of the investment philosophy.

Revised consultation paper on mutual funds' TER expected within a week

The total expense ratio (TER) represents the overall cost borne by mutual funds in managing and operating a mutual fund scheme. It encompasses various expenses, including fund management fees, administrative charges, and other operational costs.

Sebi board meeting may discuss contentious proposals such as TER, burden of proof

The proposal to regulate the total expense ratio charged by MFs, if implemented, can set fund houses back by Rs 1,400 crore. The proposal on Unexplained Suspicious Trading Activities seeks to make the accused prove his innocence, challenging the principle that one is innocent till proven guilty.

MF fees not excessive, should be left to market forces: Jefferies’ Chris Woods

Wood said in his weekly newsletter, Greed & Fear, that if SEBI's proposals are implemented, it will increasingly damage the profits of what is a clear success story, referring to the outlook of the asset management companies.

AMCs confident in passing on additional impact due to TER rule tweaks: Kotak Institutional

TER is the commission that a mutual fund company charges from investors. The market regulator has proposed to make TER all inclusive with taxes, transaction and brokerage costs, etc. being added to this.

Is your mutual fund justified for the expenses it charges you?

A recent SEBI consultation paper quotes an internal study it conducted, which showed a wide range of underperformance by mutual fund schemes versus their benchmarks. That’s what led SEBI to propose performance-linked fee. A Moneycontrol analysis made a similar finding. Just 47 percent of the schemes (regular plans) have outperformed their benchmark indices over the past 10 years

Will performance-linked fees help mutual fund investors?

SEBI is contemplating such a move given that higher-cost active schemes have underperformed, while lower-cost passive schemes have outperformed. But the jury is out on whether this will help.

MC Exclusive: Sebi proposes mutual funds ‘own their broking’ or foot broking expenses

At present, the brokerage charges incurred by mutual funds while buying and selling of shares falls outside the Total Expense Ratio (TER) that they charge unitholders.

SEBI's MF advisory committee forms 6-member sub-committee to review existing total expense ratio

The decision was made at a recent Mutual Fund Advisory Committee meeting.

SEBI's recent MF guidelines are a mixed bag for investors

Securities and Exchange Board of India, in its effort to re-energize the MF industry and to ensure its sustainable growth, announced a few guidelines recently. Financial expert Hemant Rustagi helps us to understand these guidelines and its impact of the same on the existing as well as new investors.