Listen to this article
An analysis done by Cafemutual on distributable TER offered by index funds shows that index funds focusing on sectoral and thematic funds, mid-cap funds and small-cap funds have the highest distributable TER.
While sectoral and thematic index funds offer the highest average distributable TER of 0.70%, mid-cap index funds and small-cap index funds were the next two categories with distributable TER of 0.66% each.
Distributable TER is the difference between the TER of the regular plan and the direct plan. It indicates the leeway that AMCs have for paying trial commission to their distributors.
Among debt index funds, target maturity funds have average distributable TER of 0.20%. Let us look at the to know more.
|
Category |
Average distributable TER (%) |
|
Sectoral and Thematic Funds |
0.70 |
|
Mid Cap Funds |
0.66 |
|
Small Cap Funds |
0.66 |
|
Factor Funds |
0.60 |
|
International Funds |
0.55 |
|
Large Cap Funds |
0.45 |
|
Target Maturity Funds |
0.20 |
