Sebi changes MF expense ratio math now showing higher numbers for investors

Published on 6 May 2026

The “higher” TER may be more transparent, not costlier

Sebi has updated mutual fund reporting rules by requiring trading-related costs to be included in the Total Expense Ratio. That means brokerage and transaction fees are now part of the headline TER, which can make expense ratios appear higher than before. The shift aims to improve transparency by capturing a fuller picture of scheme costs that were previously left out.

New Sebi rules add trading costs into Total Expense Ratio
Brokerage and transaction fees are now counted in TER
Expense ratios may look higher due to reporting, not necessarily higher spending
Investors get a more complete view of scheme costs

#sebi #mutual funds #ter #investor transparency #expense ratio

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

Sebi changes MF expense ratio math now showing higher numbers for investors

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