Shares of HDFC Asset Management Company and Reliance Nippon Life Asset Management plunged on Wednesday — the most since their market debut — after brokerages cut their earnings estimates following the Securities and Exchange Board of India’s (Sebi) move to cut total expense ratio for mutual funds.
Total Expense Ratio or TER is the fee that funds collect from investors every year. This annual recurring expense includes selling and promoting expenditure, agent commissions and fund management fees.
