Sebi's Cut to Mutual Fund Expense Ratios: What It Means for Investors and the Stock Market

Sebi’s reduction in mutual fund expense ratios and brokerage fees is a positive move for retail investors, but concerns about FII outflows persist for the market.

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Sebi's Cut to Mutual Fund Expense Ratios: What It Means for Investors and the Stock Market

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Sebi's Cut to Mutual Fund Expense Ratios: What It Means for Investors and the Stock Market
Sebi’s reduction in mutual fund expense ratios and brokerage fees is a positive move for retail investors, but concerns about FII outflows persist for the market.
India's capital market regulator, Sebi, has announced a reduction in the expense ratio for mutual fund asset management companies (AMCs), which are the annual fees that these companies charge to manage investors' funds. The move aims to simplify the fee structure, increase transparency, and lower costs for investors. Sebi has also cut brokerage costs for mutual funds, reducing the limit to 6 basis points (bps) from 12 bps in the cash market and to 2 bps from 5 bps in the derivatives segment. 
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