Explained: SEBI’s New Mutual Fund Cost Rules And The Impact On Returns

Описание: SEBI has overhauled the way mutual fund expenses are charged and disclosed — and that could make investing marginally cheaper for investors. The market regulator has introduced a new Base Expense Ratio framework that clearly separates fund management fees from taxes, brokerage and statutory charges. The move is aimed at improving transparency and ensuring investors are not charged multiple times for similar services. Under the revised rules, expense limits have been marginally reduced across several categories, including index funds, ETFs, fund of funds and close-ended equity schemes. Brokerage costs in both cash and derivatives markets have also been cut, and an additional exit load charge has been removed. While the immediate savings may appear modest — around 3 to 5 basis points — these reductions can meaningfully enhance long-term returns through the power of compounding. In this explainer, we break down what the revised expense ratio framework means, which funds are impacted, how costs will now be disclosed more clearly, and what investors should realistically expect. A cleaner fee structure, improved disclosures and slightly better returns — here’s everything you need to know about SEBI’s latest move on mutual fund costs.

#SEBI #MutualFunds #ExpenseRatio #InvestorProtection #MarketRegulator #InvestmentCosts #FundExpenses #TransparencyInMarkets #PersonalFinance #InvestingSmart #LongTermInvesting #WealthCreation #CompoundingReturns #ETFs #IndexFunds #FundOfFunds #EquityInvesting #FinancialLiteracy #MoneyMatters #IndiaInvests
-----------------------
Thank You for watching! Do not forget to Like | Comment | Share
-----------------------
About the channel
Watch us for the best news and views on business, stock markets, crypto currencies, consumer technology, the world of real estate, bullion, automobiles, start-ups and unicorns and personal finance. Business Today TV will also bring you all you need to know about mutual funds, insurance, loans and pension plans among others.

Follow us at:
Website: https://www.businesstoday.in
WhatsApp: whatsapp.com/channel/0029Va4Hd309hXFCqY62yD2I
Facebook:   / businesstoday  
twitter:   / business_today  
Instagram:   / business_today