SEBI wants to make mutual funds cheaper and clearer
SEBI just proposed a major update to how mutual fund fees work, aiming to cut hidden costs and make things more transparent for investors.
If you've got money in mutual funds (or are thinking about it), these changes could mean lower fees and fewer surprises.
What's changing with your mutual fund fees?
SEBI plans to separate taxes like GST and stamp duty from the main expense ratio, so you'll see exactly what you're paying for.
They also want to scrap a small exit fee reimbursement and let top-performing funds charge based on results, not just a flat rate.
Lower brokerage costs & new rules for REITs
Brokerage charges on trades are set to drop sharply—good news if you care about every rupee invested.
Plus, investments in Real Estate Investment Trusts (REITs) will count as equity instead of debt, which could change how some funds are managed.
Why does this matter?
These changes could save investors real money—up to 25 basis points off certain fund costs—and show SEBI is serious about making investing fairer and easier to understand.
If you want your investments working harder for you, this is worth keeping an eye on.