Sebi overhauls mutual fund rules to boost transparency

Markets regulator Sebi has notified a comprehensive overhaul of mutual fund regulations, introducing a Base Expense Ratio (BER) and separating fund management fees from statutory charges like GST and STT for greater transparency. At the same time, the regulator has also lowered expense ratio caps across most fund categories. The new regulations would come into…

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Why ETFs aren’t always cheaper than index mutual funds

Exchange-traded funds (ETFs) have gained popularity in India on a simple value proposition: lower expense ratios. The marketing emphasizes expense ratios of 0.05-0.15% compared to 0.20-0.50% for equivalent index mutual funds. The savings appear straightforward and compelling. This narrative focuses exclusively on explicit costs visible in fund documents while ignoring implicit costs embedded in the…

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