If investors believe that the recent move by two smaller mutual funds to reduce their expense ratios may have ripple effects across the industry, that appears to be unlikely.
Over this month, Quantum Mutual Fund, revealed a roadmap to cut its expense ratio as its asset size increases. When its flagship Long Term Equity Fund was launched in 2006, it charged an expense ratio of 2.25 per cent (gross of tax). Over the years, this has come down to 1.25 per cent (gross of tax or 1.09 per cent net of tax). Its current assets under management in this fund is at ₹658 crore.