The new TER structure will hit profits of AMCs, especially the larger ones, as it brings down expenses for investors on two fronts. First, the TER will create an additional expense burden on AMCs: from trading costs to goods and services tax (GST) on fund management fee and securities transaction tax (STT). These expenses are now paid by investors over and above the TER. The other issue is the cut in maximum permissible TER for larger AMCs, especially in the case of hybrid schemes.