AMCs increase their expense ratios just to make more money. However, SEBI has made expenses more transparent now. Expenses are now visible on a daily basis. Also, SEBI has passed many regulations related to the expense ratios. If you go back eight months down the line, you would see that SEBI reviewed the expense rules that we had for all mutual funds and expenses got reduced substantially. SEBI also mandated that the commission on the regular plans of mutual funds be paid to its distributors on a trail basis rather than upfront commissions. This will help in driving good conduct amongst distributors as they will sell only those funds that are needed by investors.
Health, life insurance premiums need a tax cut? GoM to meet on October 19
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