Since there is no distributors involved in a direct plan and no commission is payable, the TER of such plans are lower compared to regular plans where commissions need to be paid to the distributors involved.
SEBI has classified cities as'Top30' (T-30) and'Beyond top 30' (B-30) cities. T-30 refers to the top 30 geographical locations in India from where the mutual fund investments are made. The T-30 locations account for more than 80 percent of the industry AUM.
Distributors mobilizing funds from investors located in B-30 locations would earn higher commission. The additional TER shall be charged based on inflows from retail investors from beyond top 30 cities (B-30 cities).
Inflows of amount upto Rs. 2,00,000 per transaction, by individual investors shall be considered as inflows from
The report on AUM by Geography as well as tagging T-30/ B-30 transactions should be based on investors' PIN code in the folio.