Indian MF industry scores 'average' on fees and expense scorecard

The Rs 39-trillion domestic mutual fund (MF) industry has scored an ‘average’ on Morningstar Inc’s fees and expense scorecard — indicating there is more legroom to bring down the cost of investing in MFs.

In 2019, India’s score improved from ‘below average’ to ‘average’, thanks to investor-friendly regulations introduced by the Securities and Exchange Board of India, such as a ban on entry loads, up-front commissions, and overall reduction in so-called total expense ratios (TERs).

Australia, The Netherlands and the United States are currently in the top-quadrant. The Morningstar study says the TER for India is higher as still a