The regulator must look beyond just lowering the expense ratios of mutual funds to safeguard the interest of investors.
1. Abolish dividend reinvestment option
The dividend distributed by equity funds will now be taxed at 10%, reducing investors’ returns. This will make the dividend reinvestment option of equity funds unviable because it will saddle the investor with a tax he can’t avoid. Even earlier, the dividend reinvestment options of equity funds had no advanta …