Sebi outlines overhaul of mutual fund fee structure to enhance investor clarity

The Securities and Exchange Board of India (Sebi) announced a significant revamp of mutual fund fee rules to simplify disclosure and enhance investor transparency. The proposed framework focuses on curbing hidden distribution expenses and aligning fund charges directly with investor returns. This step follows rising investor concerns about opaque cost structures and uneven fee allocations among fund categories. Industry experts believe the new model could standardize pricing, improve competitiveness, and ultimately boost investor trust across India's ₹50 trillion mutual fund industry.