What is the Annual Management Charge (AMC) in relation to a Fund?
Fund Managers apply an Annual Management Charge (AMC) which is deducted directly from the fund to cover ongoing management. This is taken to pay for their investment management services, such as research analysts and portfolio managers.
However, the AMC is not the only annual cost - there are others such as fund administration services, accounting and legal fees, and custodian and settlement charges for the investments the fund holds. When you combine these with the AMC, you have the total expense ratio (TER), which is the combined annual operating expense of the fund.
You can find initial charges, AMCs and TERs listed on each fund's factsheet.