Regulatory changes introduced by SEBI in 2025 significantly enhanced investor protection and cost transparency across the mutual fund industry. Open-ended scheme TERs were reduced by up to 15 basis points, while closed ended schemes saw reductions of as much as 25 basis points. Passive fund expense ratios were capped at 0.85 percent from the earlier 1.00 percent. 

Passive investing continued to gain traction as index funds from ICICI Prudential, HDFC Mutual Fund, LIC MF, and UTI topped the return charts based on 10 year compounded annual growth rates as of December 2025. These funds delivered consistent performance at lower cost compared with many actively managed products.