Most financial advisors believe that rationalization of TER would affect the growth of the mutual fund industry.
‘What will be the impact of TER rationalisation on the mutual fund industry?’ asked a poll run on Cafemutual.com.
Close to 4900 IFAs participated in the opinion poll featuring on our website. Of these IFAs, 66% or 3216 IFAs feel that rationalization in TER is a big negative for the growth of mutual funds industry.
However, 1120 IFAs or 23% of the total respondents believe that it will lead to a faster growth of the industry AUM.
Just 558 or 11% distributors feel that this would have no impact on the industry.
Here is the snapshot of the opinion poll result.
What will be the impact of TER rationalisation on the mutual fund industry?
It will lead to faster growth in industry AUM : 1120 votes, 23%
It will negatively affect the industry’s growth: 3216 votes, 66%
No impact: 558 votes, 11%