Who gains, who loses from SEBI’s proposal for mutual funds?

While the SEBI’s move will make MF schemes more attractive to investors, it will put large asset managers at a disadvantage

June 05, 2023 / 10:18 AM IST

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Highlights

SEBI’s proposal on TER will have far reaching impact
Equity assets will have the highest impact followed by hybrid schemes
Larger AMCs will be at a disadvantage, reduces operating leverage benefit
Brokers (institutional) and distributors to bear the brunt

The asset management industry is staring at big regulatory changes. The Securities and Exchange Board of India (SEBI) has floated a consultation paper proposing a slew of changes in the total expense ratio (TER), the fees that asset managers charge investors every year to…