New Delhi, Feb. 5 -- Edelweiss Asset Management Company (AMC) has announced a steep hike in the total expense ratio (TER) cap for its flagship Bharat Bond ETFs-from a near-zero 0.0001% to 1%, a move that could have far-reaching implications for investors.

That's a staggering 2,000% increase. However, the AMC has clarified that the actual expense is only expected to be a few basis points despite the increase in the cap. A letter from Edelweiss AMC indicated that the expense ratio may only be increased to 0.02% for the time being.

TER represents the annual cost of managing a fund, expressed as a percentage of its daily net assets. Increase in TER reduces net returns, lowering the compounding potential over time.

On 30 January, Edelweiss ...