SEBI Slashes Mutual Fund Fees: Big Win for Investors, Lower Costs Ahead!

• SEBI reduced the annual fee (expense ratio) charged by Mutual Fund AMCs to simplify fee structure and boost transparency.
• Brokerage limits cut: cash market from 12 to 6 basis points, derivatives from 5 to 2 basis points.
• The extra 5 basis point charge on exit loads when investors redeem investments has been removed.
• All these significant changes will come into effect from the next financial year, April 1, 2026.
• Lower costs will enhance long-term wealth creation and encourage greater retail investor participation, despite FII outflows remaining a market concern.

Why It Matters: SEBI's fee cuts make mutual funds cheaper, benefiting investors and boosting market transparency long-term.