CPF just announced that unit trusts and investment linked plans under CPF will now have stricter expense ratio caps. What Is Total Expense Ratio? All unit trusts generally have a total expense ratio (TER) which is the annual costs of operating a fund, expressed as a percentage of the fund’s average net asset value. The costs generally include investment management fees, research fees, trustee fees, audit fees etc. TER is very important as very high ratios can reduce your returns dramatically. For example, if your annual expected returns from the equities is 5%, a 2% TER will reduce your annual returns to a mere 3%. So this is definitely a good move. In general, TER of most unit trusts have ranged from 1+% to 3+%. By reducing the TER by about 0.2 to 0.3%, investors can get $200 to $300 in annual savings from a $100k investment.   Does ......