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.
