High expense ratio erodes mutual funds' net return, so monitor cost

If your distributor suggests moving from a low- to a high-cost fund, question the rationale of the move

Sanjay Kumar Singh New Delhi
Mutual funds, MF, Mutual fund

When choosing a fund, pay attention to the expense ratio. (Photo: Shutterstock)

The Securities and Exchange Board of India (Sebi) has come out with a consultation paper recommends changes to the way the total expense ratio (TER) of mutual funds is calculated and charged. The paper also seeks to curb malpractices linked to expense ratios.
Investors, on their part, need to be cognizant of the role expense ratio should play in fund selection, and remain vigilant against malpractices.  
High cost affects return 

Also Read

Sebi plan to prune MF costs: New expense slabs, no additional charges

Sebi's MF Lite plank for passive funds seen boosting India ETF landscape

SEBI plans to restrict borrowing by AIFs to prevent systemic risk

Large-cap MFs, Index Funds to attract flows as markets pick pace: Analysts

Bajaj Finserv MF seeks Sebi approval to launch its first five schemes

Thinking of prepaying your home loan? Things you should keep in mind

Leave encashment limit hiked to Rs 25 lakh: What does it mean for you?

Fame, fortune: How to win fans, influence people as digital content creator

Savings account vs liquid fund: Which is better for you to keep money?

Fund pick: Aditya BSL Dynamic Bond Fund

First Published: May 26 2023 | 7:15 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to