{"id":27296,"date":"2018-10-23T12:58:43","date_gmt":"2018-10-23T07:28:43","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=27296"},"modified":"2018-10-23T12:58:43","modified_gmt":"2018-10-23T07:28:43","slug":"decoding-total-expense-ratio-ter-of-mutual-funds","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/decoding-total-expense-ratio-ter-of-mutual-funds\/","title":{"rendered":"Decoding Total Expense Ratio (TER) of mutual funds"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindu.com\/business\/Economy\/decoding-total-expense-ratio\/article25022107.ece\">Decoding Total Expense Ratio (TER) of mutual funds<\/a><\/p>\n<p><strong>News<\/strong><\/p>\n<ol>\n<li>SEBI has recently asked mutual funds to reduce their TER or Total Expense Ratio.<\/li>\n<\/ol>\n<p>What is Mutual Fund?<\/p>\n<ol start=\"2\">\n<li>A <strong>mutual fund<\/strong> is a professionally managed investment fund that pools money from many investors to purchase securities.<\/li>\n<\/ol>\n<p><strong>What is Total Expense Ratio (TER)?<\/strong><\/p>\n<ol start=\"3\">\n<li>The asset management companies who managed these funds on the behalf of investors usually <strong>charged a cost<\/strong> which is some percentage of investment. This cost known as Total Expense Ratio (TER).<\/li>\n<li>Securities and Exchange Board of India (SEBI) prescribed the maximum TER that a fund can charge their investors.<\/li>\n<\/ol>\n<ul>\n<li>For an example, if a total profit earned on an investment is 15% and the asset management company charges 2% as TER from investors, then the total profit for an investor will be 15%-2%=13%.<\/li>\n<\/ul>\n<p>Thus, TER has direct impact on the money invested by an investor.<\/p>\n<ol start=\"5\">\n<li><strong>Impact of the recent changes<\/strong><\/li>\n<\/ol>\n<ul>\n<li>Increase in returns to the investor as he has to pay a low fee to the asset management company.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Decoding Total Expense Ratio (TER) of mutual funds News SEBI has recently asked mutual funds to reduce their TER or Total Expense Ratio. What is Mutual Fund? A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. What is Total Expense Ratio (TER)? The asset management companies&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/decoding-total-expense-ratio-ter-of-mutual-funds\/\">Continue reading <span class=\"screen-reader-text\">Decoding Total Expense Ratio (TER) of mutual funds<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-27296","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704703871},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=27296"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27296\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=27296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=27296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=27296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}