4min chapter

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What Lies Behind Mutual Fund Expense Ratios: SEBI’s Call for Transparency in TERs

Capitalmind Podcast

CHAPTER

How Much of the AMC Makes Out of This?

The TR includes distributor commissions. Roughly half or more than half of the AM that comes from an equity fund is coming through distributors. PPFS and Quant get 61%, 60% plus of their AM from direct, which means people find them and give them money. Kotak multi-cap makes 0.56%. It's earning a lot of money on 37,000 crores. But any given distributor does not have 37,000 Crores. So if you're a small distributor that's making less than 100 crores of AUM, your distribution commissions go down over time as the slab becomes higher and higher.

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