Fee does not matter in actively managed equity funds

Choose index funds and debt schemes that have a low expense ratio

The Securities and Exchange Board of India (Sebi) has been pushing reforms to lower mutual fund charges. Recently, it lowered the additional expense they can charge in place of exit loads from 20 basis points (bps) to 5 bps, a 15 bps reduction. It had earlier mandated that any exit load charged should be deposited back in the scheme, and instead fund houses could charge extra 20 bps, but this provision was misused by fund houses. Sebi has also reduced the number of cities where mutual fund houses can pay higher distribution fees to agents, which effectively makes it difficult