Is your fund house charging unreasonably high fees to manage your portfolio? Don’t worry! In the interest of investors, market regulator SEBI may instruct fund houses to cut down their expense ratio to 5 basis points from the existing 20 basis points. This comes in the backdrop of the existing fee restraints for fund houses. It will be worthwhile to ponder over the motivation behind all these moves.
The equity participation of investors is very low in India as compared to rest of the world. Be it frequent market fluctuations or the high cost of investment, a lot of deterrents still prevail in the economy. SEBI’s move is aimed at making equity mutual fund investments a viable proposition for the retail investors.
