Effective Jan 1, fund managers will have to lower the total expense ratio (TER) on funds and investment-linked products deemed to be higher risk to a maximum of 1.75 per cent from the current 1.95 per cent if they wish to continue offering the products under the CPFIS. Higher risk funds are those that invest in stocks. TER refers to the ongoing costs of operating a fund, expressed as a percentage of the fund’s average net asset value. The costs may include investment management fees, trustee fees, and audit fees. For existing lower-risk products such as money market funds that invest in short-term debt securities, the maximum TER allowed under the CPFIS will ...