Investing in mutual fund becomes cheaper on Sebi measures: Report

Investing in mutual funds has become less expensive in India due to several investor-friendly measures taken by the markets regulator Sebi, including ban on upfront commissions as well as front loads and a cap on expenses charged from investors, according to a report by Morningstar India.

India had been among the most-expensive countries when it comes to expense ratios.

The steps taken by Sebi has helped in improving India's fees and expenses grade to 'average' from 'below average'.

India has earned a higher grade than several American, European and Asian markets such as Belgium, Canada, France, Germany, Hong Kong, Spain, Singapore, Italy, Mexico and Taiwan.

Average grade is driven by the combination of a globally competitive and relatively lower asset-weighted median for fixed-income funds, which reflects traction in commission-free share classes and relatively higher asset-weighted medians in allocation funds and equity schemes.

According to Morningstar's Global Fund Investor Experience (GFIE) 2019, "India's fees and expenses grade improves to average in this study, from below average in the 2017 study."