It is hard to digest the fact that, even though Direct and Regular Mutual funds have similar investment objectives, there is a difference when it comes to returns. This article is for mutual fund investors who want to know about how the direct and regular mutual funds are similar in terms of portfolio and how do they differ when it comes to returns.
The total expense ratio (TER) is a measure of the total cost of a fund to the investor. Total costs may include various fees (purchase, redemption, auditing) and other expenses. The TER, calculated by dividing the total annual cost by the fund’s total assets averaged over that year, is denoted as a percentage.