What is a TER cap?
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. These costs consist primarily of management fees and additional expenses, such as trading fees, legal fees, auditor fees, and other operational expenses.
What is AUM and TER?
AUM or Assets Under Management refers to the total value of assets held in its portfolio by a Mutual Fund. Suppose an Equity Mutual Fund has an AUM of Rs. 800 crore. In this case, the maximum TER that the Equity-oriented Mutual Fund can charge is 2.14%.
What does TER stand for in finance?
What is Total Expense Ratio? The TER is the cost of managing a fund that is expressed per unit. Usually stated as a percentage of the assets under management, the TER accounts for all the expenses incurred to run the show. These costs that the fund incurs is recovered from the investor.
What is TER ETF?
In funds, total expense ratio (TER) is the amount you’ll have to pay to hold an investment (like an ETF) for one year. This figure will come out of the fund’s performance rather than being separately invoiced to you. TER is shown as a percentage of the total assets managed by the fund.
Is TER charged annually?
The total expense ratio (TER) is a measure of the total cost of a fund to an investor. Typically it consists of the annual management charge (AMC), the fee that the fund company charges annually to manage the fund (typically commission paid to fund managers), plus ‘other’ charges incurred with running the fund.
How do you find TER?
How is TER Calculated? The calculation used for determining TER is the following: Total expense ratio = (Total costs of the scheme during the period / Total Fund Assets)*100. TER is typically expressed as an annualized percentage of the assets of the fund.
What is Blue Chip fund?
Blue chip funds are equity mutual funds that invest in stocks of companies with large market capitalisation. These are well-established companies with a track record of performance over some time. Blue Chip is commonly used as a synonym for large cap funds.
What is TER in Harry Potter?
Yes, “ter” means “to” and “yeh” means “you” 😆
How is TER deducted in ETF?
As part of its normal operations, an ETF company incurs expenses ranging from manager salaries to custodial services and marketing costs, which are subtracted from the NAV. Assume an ETF has a stated annual expense ratio of 0.75%. This is the total return minus the expense ratio.
How is TER calculated in ETF?
The TER is the measure we use to determine how much it costs to run an ETF. It is calculated by dividing the cost of running the fund by the amount of assets in the fund.
