SEBI Cuts Mutual Fund Expense Ratios, Easing Costs for Investors

SEBI’s 10–15 basis-point cut in mutual fund expense ratios reduces costs for investors, potentially enhancing long-term returns after fees.

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SEBI Cuts Mutual Fund Expense Ratios, Easing Costs for Investors

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SEBI Cuts Mutual Fund Expense Ratios, Easing Costs for Investors
SEBI’s 10–15 basis-point cut in mutual fund expense ratios reduces costs for investors, potentially enhancing long-term returns after fees.
The Securities and Exchange Board of India (SEBI) has introduced a reduction in mutual fund expense ratios by 10–15 basis points for select categories, aiming to lower the cost burden on investors. The cut affects categories such as large cap, flexi-cap and other actively managed equity funds, potentially improving net returns for unit holders over time. Lower operating costs can enhance the long-term compounding effect for systematic investors by reducing drag on performance. 
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