Passing fee cut to distributors may pull back MF industry's growth: Experts

The mutual fund industry could see its strong growth coming under pressure if bulk of the cut in total expense ratio (TER) is passed onto the distributors. On Wednesday, the panelists at the Morningstar Investment Conference welcomed the move on making mutual funds more cost-effective for investors but also stressed the importance of keeping distributors’ interests in mind.

Experts said if MF industry like in past, passes the bulk of the burden of fee cut to distributors, it would weigh on the industry’s future growth.

“When you are still at the stage of expanding the market, one has to really