SEBI Chief U K Sinha has reportedly asked fund houses to reduce the TER for retail investors. He was addressing fund officials at the AMFI board meeting held recently in Mumbai, said three CEOs who have attended this meeting.
Referring to the earlier practice of offering low TER offered to institutional investors, Sinha has reportedly asked fund houses to pass on similar benefits to retail investors too. He has reportedly said that fund houses were in a mad rush to offer low TER to institutional investors particularly in liquid funds. He is said to have questioned fund houses that why it cannot be done to benefit retail investors.
Earlier, many fund houses offered low expense ratio to institutional investors, particularly in liquid funds, and short term debt funds.
