Is high profitability of AMCs due to high TER?

At the second AMFI Annual Summit held in Mumbai, SEBI chief Ajay Tyagi commended the industry for achieving stellar growth in the last few years. However, he noted that the Indian mutual fund AUM to GDP ratio is still lower at 11% of GDP as compared to global standards. The global average AUM to GDP ratio is around 62%. He said the industry has a lot of catching up to do in order to improve penetration.

Source: https://www.morningstar.in/posts/48338/high-profitability-amcs-due-high-ter.aspx