Finshots Daily Why mutual funds will soon cost less
4 snips
Nov 3, 2025 The discussion dives into the SEBI consultation paper exploring potential changes to mutual fund charges. It highlights the explosive growth of mutual funds in India and the impact of 2012 regulations that expanded access to smaller towns. The show reveals hidden costs affecting investors and discusses the proposed removal of exit loads and cuts to brokerage caps. There's also a push for clearer expense disclosures and the option for AMCs to implement performance-linked fees. These changes promise greater transparency and implications for both investors and asset management companies.
AI Snips
Chapters
Transcript
Episode notes
From TV Ads To 25 Crore Accounts
- Mutual funds went from obscure TV ads with the disclaimer 'mutual funds are subject to market risks' to being part of almost every investor's life.
- Over 25 crore accounts now exist, making funds the go-to investment choice for many Indians.
Regulation Fueled A Sixfold Industry Boom
- Mutual funds in India exploded from ~12 lakh crore to over 75 lakh crore in a decade, driven by regulation and distribution expansion.
- SEBI's 2012 incentives and easier distributor certification played a major role in scaling penetration nationwide.
Stated TERs Hid Real Investor Costs
- SEBI allowed higher TERs for flows from beyond top 15 cities and separate charges like GST and brokerage, which increased actual investor costs.
- This created a gap between stated TER limits and the true cumulative cost paid by investors.