{"id":"f-e550251d2f-ca58cb35-2417-50f3-b8f8-7c3756b40ea8","title":"Mutual fund expense ratio to reduce as SEBI excludes statutory levies","description":"SEBI approves new mutual fund expense norms, excluding statutory levies from expense ratios and revising ETF base expense ratio to 0.9 percent, enhancing transparency for investors.","timestamp":1765979753,"category":"business","headline":"Mutual fund expense ratio to reduce as SEBI excludes statutory levies","modifiedHeadline":"Mutual Fund Costs To Fall After SEBI Move","subCategories":["scid_82c07a94"],"region":"IN","bundleMetaData":{"bundleId":"ece1ae3d-908e-48c7-9e53-a4aa910ee4db","bundleTitle":"Grow Your Money","cardData":null},"iabCategoryId":"53","fcSummary":"Sebi has approved changes to mutual fund expense norms, reducing headline expense ratios by excluding statutory levies. These charges will be applied separately. Base expense ratio for ETFs is revised to 0.9%, excluding levies, enhancing cost structure transparency.","summary":"SEBI's new MF expense norms excluding statutory levies, revise ETF ratios to 0.9%, promising enhanced transparency for investors.","ctaUrl":"https://trends.glance.com/newz/Personal_Finance/IN/en/cnbc-tv18/f-e550251d2f-ca58cb35-2417-50f3-b8f8-7c3756b40ea8","sourceUrl":"https://www.cnbctv18.com/personal-finance/sebi-board-decisions-mutual-fund-expense-ratio-changes-ws-l-19794396.htm","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/g-xWPBTya6A0.webp","content":"Confirming an earlier CNBC-TV18 newsbreak, the Securities and Exchange Board of India (SEBI) has approved changes to mutual fund expense norms, reducing headline expense ratios, after deciding to exclude statutory levies from the expense ratio calculation.\n\n
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\n Following the decision taken at its board meeting on Wednesday, December 17, statutory charges such as securities transaction tax (STT), commodity transaction tax (CTT), GST, stamp duty, SEBI fees and exchange fees will no longer be bundled into the expense ratio. Instead, these levies will be charged on actuals, over and above permissible brokerage limits.\n
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\n SEBI said the total expense ratio (TER) will now be calculated as the sum of the base expense ratio, brokerage, and regulatory and statutory levies, bringing greater transparency to how fund costs are disclosed to investors.\n\n
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\n As part of the overhaul, SEBI has also revised the base expense ratio for exchange-traded funds (ETFs). The current 1% cap, which included statutory levies, will be replaced with a 0.9% base expense ratio, excluding such levies.\n
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MUTUAL FUND EXPENSE RATIO FOR EQUITY SCHEMES\n
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AUM (in ₹ cr)	Current	New
Up to 500	2.25%	2.10%
500-750	2%	1.90%
750-2,000	1.75%	1.60%
2,000-5,000	1.60%	1.50%
5,000-10,000	1.50%	1.40%
10,000-15,000	1.45%	1.35%
15,000-20,000	1.40%	1.30%
20,000-25,000	1.35%	1.25%
25,000-30,000	1.30%	1.20%
30,000-35,000	1.25%	1.15%
35,000-40,000	1.20%	1.10%
40,000-45,000	1.15%	1.05%
40,000-45,000	1.10%	1.00%
>50,000	1.05%	0.95%

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\n Market participants said the changes will make mutual fund cost structures clearer, allowing investors to better differentiate between fund management fees and transaction-related charges, while also aligning ETF expense disclosures more closely with global practices.\n\n
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\n SEBI is expected to issue a detailed circular outlining implementation timelines and operational guidelines.","readDurationInMinutes":"4","author":{"name":"CNBC TV18","logo":"https://glance-mob.glance-cdn.com/public/bubble/jpeg/ecc3d19b-fc52-4a39-881c-5b0936ae723b.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"383191425","type":"COMSCORE"}],"pointerSummary":["SEBI approves changes to mutual fund expense norms, excluding statutory levies.","Expense ratios reduced; statutory charges now billed separately, increasing transparency.","ETF expense ratio cap lowered to 0.9%, excluding levies; detailed guidelines forthcoming."],"tags":["MutualFunds","ExpenseRatio","SEBI","Investment","SecuritiesAndExchangeBoardOfIndia","ETF","ExchangeTradedFunds","StatutoryLevies","Transparency","STT","CTT","GST","StampDuty","SEBIFees","ExchangeFees","TER","TotalExpenseRatio","CNBCTV18"],"consent":true,"redirectionEnabled":false}

Mutual fund expense ratio to reduce as SEBI excludes statutory levies

SUMMARY