How-to expense ratio MF disclosure

How to read mutual fund expense disclosure

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MF expense disclosure is the most underweighted variable in retail decisions. 1% TER seems small until you compound it over 25 years.

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Step-by-step procedure

See the procedure infobox above for the six steps.

TER caps (SEBI)

AUM slabEquity maxDebt max
First Rs 500 crore2.25%2.00%
Next Rs 250 crore2.00%1.75%
Next Rs 1,250 crore1.75%1.50%
Next Rs 3,000 crore1.60%1.35%
Next Rs 5,000 crore1.50%1.25%
Next Rs 40,000 crore5 bps reduction per Rs 5,000 croresame
Above1.05%0.80%

Direct plan: Regular TER minus distribution commission.

See also

External references

References

  1. SEBI (Mutual Funds) Regulations, 1996, Regulation 52 (TER caps).
  2. SEBI TER Circular updates.
  3. AMFI Best Practice Guidelines.

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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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