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SEBI’s Mutual Fund Reforms: Unbundling Fees and Setting Stricter Caps
SEBI’s mutual fund reforms provide clearer fee disclosures, lower BER caps, and empower investors to make more informed choices based on costs.
The Securities and Exchange Board of India (SEBI) has implemented significant reforms aimed at improving transparency in mutual fund fee structures. These changes unbundle the Total Expense Ratio (TER) into four components: Base Expense Ratio (BER), brokerage and transaction costs, regulatory levies, and statutory levies. With stricter caps on BER across various fund types, such as index funds and ETFs, investors will now see clearer breakdowns of costs.