Originally Posted by est.1878
Me and you both...
However if you are clued up to explain Total expense ratio vs amc for me go for it... Reppable activity...
In basic terms....
You've bought the Fred Tissue UK Equity Income Fund run by Armchair. Within that fund are a number of stocks: BP, Royal Dutch Shell etc etc. But the fund manager might also want to buy some funds as well as individual company shares. Those funds have their own underlying charges.
So your AMC is Armchair's fee for running the fund.
TER (sometimes shown as OGC on the factsheet) is Armchair's fee, plus all the fees of the other funds within the fund, plus all the dealing charges. Basically the total cost to you, of running the fund.
I think 1% TER is high since you can get etfs for less than 0.2% but 1% is the absolute max you should be paying. Any higher than that and steer clear. And really, 1 is too high.