SEBI cuts mutual fund brokerage fees in half—here's what it means
SEBI just announced a big drop in the max brokerage fee for mutual funds, cutting it from 12 to 6 basis points (bps), and slashing derivative caps from 5 to 2 bps.
These changes kick in April 2026 and are all about making investing cheaper and more transparent.
What's changing for investors?
SEBI is removing extra charges over exit loads and keeping taxes like GST and stamp duty out of the Base Expense Ratio (BER).
Now, your total expense ratio will clearly show what you're paying—no hidden extras.
This move is meant to help you see exactly where your money goes.
New limits on fund expenses
Expense caps are dropping across the board: index funds/ETFs now max out at 0.9%, and non-equity schemes drop to just 0.8%.
Why does this matter?
With lower costs, no double-charging, and clearer fees, SEBI hopes more people—especially new investors—will feel confident getting into mutual funds.
It's all part of making investing friendlier, fairer, and a bit easier to understand.