MF News SEBI is likely to ask fund houses to put GST component within the maximum TER

SEBI is likely to ask fund houses to put GST component within the maximum TER

Currently, AMCs charge GST over and above the maximum TER limit.

Team Cafemutual Feb 18, 2023

Mutual funds may get more cost effective.

SEBI has been mulling on the reduction of cost of mutual funds by asking fund houses to incorporate GST levied on fund management within the maximum permissible TER limits, said two people familiar with the development.

Currently, fund houses charge GST of 18% on the fund management component, which is over and above the maximum TER limit.

Fund houses can charge maximum TER of 2.25% in equity funds and 2% in other than equity funds.

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4 Comments

ARN-8457 · 2 years ago `

How mfd can apply for gst input credit

DINESH KUMAR KUKREJA · 2 years ago `

Yes, TER will come down, means commission will be reduced

VISHAL RASTOGI · 2 years ago `

This is not clear illustration ....plz. elaborate it little more ....!

Santosh Hegde · 2 years ago `

Is it affect trail commission...

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