Good news for investors, Sebi caps mutual funds' annual expense fees

Mutual funds' investor fees will be capped at 2.25 per cent of total expenses, according to new norms issued by markets regulator Sebi.

Sebi’s new fee structure will come into effect from April 1, 2019 and it will rationalise the total expense ratio (TER), the fee that mutual funds (MF) collect from investors every year to manage their money.

The regulator has capped the maximum TER for closed-ended equity schemes at 1.25 per cent, and other than equity schemes at 1 per cent.

The maximum TER for open-ended equity schemes will be 2.25 per cent, and 2 per cent for other open-ended schemes,