On 9 April, Sebi registered investment advisor Basavaraj Tonagatti started receiving emails from his clients. The message contained notifications from HDFC Mutual Fund and UTI Mutual Fund informing investors that the fund houses were raising the total expense ratio (TER) on their index funds.
According to the notification from UTI Mutual Fund, the company plans to hike the TER on its UTI Nifty Index Fund from 16 April. For direct plans, the increase will be 8 basis points. It plans to raise it to 0.18% from the existing 0.1%. One basis point is one-hundredth of a percentage point.