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SEBI reshapes mutual fund cost structure to improve transparency
SEBI’s new BER and TER framework separates statutory levies from fund expenses, improving transparency while offering only modest real cost savings for investors.
India’s market regulator has overhauled mutual fund expense rules by introducing the Base Expense Ratio, separating statutory levies from headline costs. Taxes and charges such as GST, STT, and exchange fees will now be added over BER to compute the Total Expense Ratio. While headline expense ceilings have been reduced across fund categories, experts say the reform improves cost clarity more than materially lowering investor expenses.