What is the difference between AMC and TER? - ProProfs Discuss
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What is the difference between AMC and TER?

What is the difference between AMC and TER?

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Asked by T. Lopez, Last updated: Nov 09, 2024

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7 Answers

Zack

Zack

Find happiness in writing new things.

Zack
Zack , English Professor, PhD, Basel

Answered Nov 03, 2020

When you say TER, this means Total Expense Ratio. When you are doing this, you are referring to the measurement of your fund’s operating costs. This will usually come in the form of a percentage. When you say AMC, you are referring to the Annual Management Charge. This is also a measurement of your fund’s operating costs but this time you would need to add share registration and also custodian fees. If you would like to know the TER damage, you need to check out the fund cost comparison for more details. Take note that the AMC is normally the type of charge that will be given to clients annually.
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Zack

Zack

Find happiness in writing new things.

Zack
Zack , English Professor, PhD, Basel

Answered Nov 03, 2020

If you are familiar with the terms “AMR” and “TER,” this means that you are somewhat familiar with the field of investments and stockholding. These are the terms that are normally used there. When you say TER, this stands for Total Expense Ratio. This is used to estimate the operating costs of funds but this time, you would see it in percentage form. AMC stands for Annual Management Charge. This would provide different charges such as custodian fees and share registration. It is through the TER that will provide you details about how the fund is performing so far overall. The AMC, on the other hand, will only provide you with details about a small percentage of what you are trying to measure.
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W. Kaye

W. Kaye

Here to answer and learn

W. Kaye
W. Kaye, Ex-Marine, Post Graduate, Chapel Hill

Answered Oct 14, 2020

TER or Total Expense Ratio is a type of measurement that shows the operating cost of a fund, usually in form of a percentage. At times, you might see people referring to TER as management ’s total expense ratio, both are referring to the same thing. Mathematically, the total expense ratio is calculated by dividing the total costs of the fund by its total assets.

However, the result should be expressed in percentage. When calculating, the elements of the total costs such as the operating expenses, management advisory fee, administrative costs, and others should be well accounted for.

However, AMC or Annual Management Charge is also an element of the total costs. So, you will need to first determine the AMC when calculating the TER. When TER is calculated, it is usually considered as an asset, whereas AMC is seen as a liability. Also, TER is usually preferred to AMC in most cases.

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Samantha Stewart

Samantha Stewart

Love to do some charity work. Have a passion for writing and do it in my spare time

Samantha Stewart
Samantha Stewart, Philanthropist, Post Graduate, Corpus Christi

Answered Oct 14, 2020

TER or Total Expense Ratio is a type of measurement that shows the operating cost of a fund, usually in the form of a percentage. At times, you might see people referring to TER as management’s total expense ratio; both are referring to the same thing. Mathematically, the total expense ratio is calculated by dividing the total costs of the fund by its total assets.

However, the result should be expressed in percentage. When calculating, the elements of the total costs, such as the operating expenses, management advisory fee, administrative costs, and others, should be well accounted for. However, AMC or Annual Management Charge is also an element of the total costs.

So, you will need to first determine the AMC when calculating the TER. When TER is calculated, it is usually considered as an asset, whereas AMC is seen as a liability. Also, TER is usually preferred to AMC in most cases.

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Anthony Paul Bonadio

Anthony Paul Bonadio

Its kind of my job to give answers

Anthony Paul Bonadio
Anthony Paul Bonadio, Teacher, MCA, PhD, Toledo

Answered Oct 12, 2020

AMC and TER are two aspects of stocks and investments. TER stands for Total Expense Ration. It helps measure the cost of the fund to operate. This measurement is important for investors because it helps identify the profit that they will get from their investment. It also helps investors see how the stock will perform. AMR stands for Annual Management Change.

For investors, this can be considered a liability. It is an essential cost to the company, and it gives investors an estimate of how much they will pay. This is compared to TER, which is seen as an asset to the investor.

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D. Nichols

D. Nichols

D. Nichols
D. Nichols

Answered Apr 13, 2020

TER is the acronym for Total Expense Ratio while AMC is the term used for Annual Management Charge. TER is known to be the type of measurement that is used for the fund’s operating cost. The TER is needed by the investor so that he will know what the possible profit that he is going to get will be.

The AMC, on the other hand, can sometimes be considered to be a liability since this is something that will be labeled as one of the costs of the company. TER can be considered an asset because this is a vital form of measurement that will be used by people. Through TER people will know what the performance of the stocks will be. AMC will give an idea about how much the investors will be expected to pay.

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L. Sevigny

L. Sevigny

L. Sevigny
L. Sevigny, Doctor, Las Vegas

Answered Apr 08, 2020

AMC and TER are idioms in the field of stockholding and investments. , mostly in the area of fund changes. The total expense ratio is accomplished by dividing the fund's total cost over total assets. The quotient from this calculation is conveyed in a percentage as the total cost ratio. Total assets are simple to know since there are statements and records to use as references.

Investors prefer total expense ratio as the more accurate total measurement. The yearly management charge is one of the parts of the total costs of a mutual fund. The amount of management is a change made by a financial institution or representatives who manage the investment accounts of individual investors.

Unlike the total expense ratio, the yearly management charge is published in the records. The annual management charge is only one component of total costs, one of these elements computing the overall ratio.

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