SEBI introduces revised expense framework for mutual funds to lower investor costs, simplify fee disclosure, and improve transparency across schemes.
Total expense ratio limits are tightened under new rules, ensuring asset management companies charge standardized fees regardless of fund size.
Investors will see clearer cost breakups, with distributors’ commissions and operational charges disclosed separately, helping understand what exactly they pay.
Rules encourage competition among fund houses, pushing them to manage expenses efficiently, potentially improving net returns for long-term retail investors.
AMCs must comply within timelines, update scheme documents, and follow SEBI monitoring standards, reinforcing accountability and confidence in mutual funds.