Key Points
The last round of TER cut saw AMCs pass on a major share (75-90%) of the impact largely to distributors..
This time, however, given the inclusion of GST, trading cost and securities transaction tax (STT), the impact will have to be shared with brokers as well, said a report by Kotak Institutional Equities...
Asset management companies (AMCs) may pass on a high share of the total expense ratio, or TER, impact to intermediaries such as distributors, brokers and registrar & transfer agents (RTAs)...
AMCs indicated that the commission ratio is just one of the factors that determine sales, and there are other important drivers such as fund performance, vintage of the brand and distribution reach, the report said.. Similar to last time, large distributors with a sub-broker network will pass on the impact to independent financial advisers, or IFAs..
