What is Total Expense Ratio (TER) in mutual funds?

The Total Expense Ratio is the annual fee charged by the mutual fund scheme for managing your money. The TER covers the expenses for managing a mutual fund scheme – such as sales & marketing / advertising expenses, administrative expenses, transaction costs, investment management fees, registrar fees, custodian fees, audit fees calculated as a percentage of the fund’s daily net assets. The daily NAV of a mutual fund is disclosed after deducting the expenses. The Securities & Exchanges Board of India