{"id":278762,"date":"2024-01-19T18:54:58","date_gmt":"2024-01-19T13:24:58","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=278762"},"modified":"2024-01-20T12:04:42","modified_gmt":"2024-01-20T06:34:42","slug":"total-expense-ratio","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/total-expense-ratio\/","title":{"rendered":"What is Total Expense Ratio in 2024 | A Brief Summery"},"content":{"rendered":"

\"What<\/p>\n

Source<\/strong>: This post is based on the article \u2018\u2019 TER proposals hang fire\u2019\u2019<\/strong> published in \u2018\u2019The Hindu\u2019<\/strong>\u2019 on 19 January 2024.<\/p>\n

Why In The News<\/strong><\/h2>\n

The market regulator SEBI had announced to tweak total expense ratio.<\/p>\n

What is Total Expense Ratio<\/strong><\/h2>\n

The total expense ratio (TER) is a measure of the total costs associated with managing and operating an investment fund, such as a mutual fund<\/strong>. It consists of management fees, trading fee, legal fee etc<\/strong>.<\/p>\n

Importance of Total Expense Ratio<\/strong><\/h2>\n

1) It is a measure of a fund\u2019s operational efficiency.<\/p>\n

2) Investors pay attention to the expense ratio to understand if a fund is an appropriate investment for them after fees are considered.<\/p>\n

What Was The Need For Tweaking<\/strong><\/h2>\n

1) The intent of altering TER norms last year was to improve transparency<\/strong> and pass on the benefit of scale to investors.<\/p>\n

2) The expense ratio eats into returns. The higher the expense ratio, the lower are the returns<\/strong> on the investment. Hence, there was a need to rationalize it.<\/p>\n

Mutual Fund Advisory Committee<\/p>\n

The committee is mandated to advise SEBI (securities and Exchange Board of India) <\/strong>on issues related to regulation<\/strong> and development <\/strong>of mutual fund industry.<\/p>\n

Securities and Exchange Board of India<\/p>\n

The Securities and Exchange Board of India was established as a statutory body<\/strong> in the year 1992<\/strong> under the Securities and Exchange Board of India Act, 1992 (SEBI Act, 1992)<\/p>\n

UPSC Syllabus: Economy .<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: This post is based on the article \u2018\u2019 TER proposals hang fire\u2019\u2019 published in \u2018\u2019The Hindu\u2019\u2019 on 19 January 2024. Why In The News The market regulator SEBI had announced to tweak total expense ratio. What is Total Expense Ratio The total expense ratio (TER) is a measure of the total costs associated with… Continue reading What is Total Expense Ratio in 2024 | A Brief Summery<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":278847,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127],"tags":[11872],"class_list":["post-278762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-factly-articles","category-economy","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/What-is-Total-Expense-Ratio.webp?fit=1280%2C1000&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/278762","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=278762"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/278762\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/278847"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=278762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=278762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=278762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}