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An analysis done by Cafemutual on average distributable TER of index funds shows that index funds focusing on mid cap funds, sectoral and thematic funds and small cap funds are the top three categories with the highest average distributable TER.
Mid cap funds have the highest average distributable TER of 0.67%. Following mid cap funds are sectoral/thematic funds and small cap funds as the next two categories with the highest average distributable TER of 0.66% and 0.64%, respectively.
Next in the line with highest average distributable TER are factor funds, international funds and large cap funds.
Among debt index funds, target maturity funds have an average distributable TER of 0.21%.
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.
Let us look at the table below to know about average distributable TER category-wise:
|
Category |
Average |
|
Mid Cap Funds |
0.67 |
|
Sectoral and Thematic Funds |
0.66 |
|
Small Cap Funds |
0.64 |
|
Factor Funds |
0.61 |
|
International Funds |
0.48 |
|
Large Cap Funds |
0.41 |
|
Target Maturity Funds |
0.21 |
