SEBI is shaking up mutual fund fees with a real-time TER rethink. The plan: strip brokerage and some taxes from TER and push them into clearer disclosures. It’s a consultation paper, with SEBI asking for feedback before locking it in [1].
TER realignment explained TER would reflect actual running costs, not hidden charges inside TER. Brokerage and some taxes would sit outside TER but be disclosed clearly [1].
Brokerage caps under the spotlight Cash market trades could fall from 12 bps to 2 bps; Derivatives from 5 bps to 1 bp [1]. For investors this means cleaner comparisons; for asset managers, profits before tax could take a 30-33% hit by 2027 if the framework passes [1].
Not final yet; timeline and hints from the real world It’s a consultation paper; SEBI is seeking feedback, final details like TER slabs, brokerage caps, phase-in timelines will be announced later [1]. A real-world pointer: SBI Infrastructure Fund Direct Growth has seen its TER rise from 0.35% to 1.1% in the last year [2].
SIP moves and bank relationships in the mix Some investors are discussing moving SIPs to HDFC Securities to boost TRV with the bank; Zerodha offers direct plans, which can matter on costs [3].
Keep an eye on 2025-26 to see how the framework lands and costs evolve.
References
SEBI Just Nuked High Churn Mutual Fund Fees
SEBI proposes real TER, minus hidden costs; brokerage caps to drop; clearer disclosures; AMC profits may fall 30-33%.
View sourceSEBI Just Nuked High Churn Mutual Fund Fees
SEBI consults changing TER, lowers brokerage; investors welcome, AMCs may lose profits; final details await, timelines uncertain and impact material.
View sourceDoes it make sense to start investing via HDFC Securities to increase TRV with the bank?
Evaluates moving mutual fund SIPs from Zerodha to HDFC Securities to gain TRV versus higher fees; direct vs regular plans.
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