Economics · Economy

The Total Expense Ratio (TER) is a measure of the total costs associated with managing and operating a mutual fund scheme, expressed as a percentage of the fund's average daily net assets. These costs include management fees, trustee fees, audit fees, marketing and distribution expenses, and other operational costs. The Securities and Exchange Board of India (SEBI) has prescribed specific slabs for the maximum Total Expense Ratio that an Asset Management Company can charge for different types of schemes based on the size of the Assets Under Management. For an open-ended equity-oriented scheme, what is the maximum permissible Total Expense Ratio for the first 500 crore rupees of the average daily net assets according to the regulatory slabs?