By MFJ Team
TER is stands for Total Expanse Ratio, but how is it calculated?
Let’s assume you have invested in 100 crore asset company.
It incurs administrative expenses of Rs 20 lakh per year and pays a management fee of Rs 25 lakh. Other expenses are Rs 25 lakh.
TER = Total Expenses/total Assets
Total Expenses = Administrative costs + Management fees + Other expenses