The capital markets regulator has proposed sweeping changes to the way mutual funds charge fees to investors for managing their money. Sebi has also proposed to introduce a performance fee that mutual funds can charge investors for superior returns. The recommendations are aimed at bringing down mis-selling and reducing costs of investing in mutual funds. The revised slabs are proposed with higher TER limits so as to cover all costs and expenses including GST on management fees. Sebi said for Hybrid and Solution Oriented schemes, the TER would be the weighted average of TER of equity and equity related instruments and TER of other than equity & equity related instruments.

Source: Economic Times May 19, 2023 10:22 UTC