Sebi to review fees and expenses charged by mutual fund companies

Study to provide inputs for future policy formulations, says market regulator

The Securities and Exchange Board of India (Sebi) has started a review of fees and expenses charged by mutual funds. Data from the study will be used to formulate policies in line with the current market dynamics.

"Sebi has initiated a detailed study of existing regulatory provisions applicable for fees and expenses in mutual fund schemes vis-à-vis market practices," it said in a press statement on Friday.

The regulator has strict guidelines on where and what mutual funds can spend, and what they can charge their customers. For example, an equity scheme can charge a maximum of 2.25 per cent of the assets under management (AUM) as expenses for the first Rs 500 crore AUM. This upper-limit on charges declines gradually with the rise in AUM.