Good news for mutual fund investors! Charges are set to decrease

SEBI has announced great news for the millions of investors who invest in mutual funds. To reduce the burden of fees on investors and to increase transparency in charges, SEBI has announced new regulations. These changes, issued under the name SEBI (Mutual Funds) Regulations 2026, will directly benefit mutual fund investors across the country. The Total Expense Ratio (TER), which was previously collected as a single charge, has now been divided into three categories. It is estimated that with the new system, investors will have the opportunity to spend 5-7 basis points less.

According to the new regulations, mutual fund charges will now be divided into three categories — Base Expense Ratio, Brokerage, and Statutory Taxes. The Base Expense Ratio will be considered as fund management expenses. Transaction costs incurred during buying and selling will be declared as brokerage. SEBI has mandated that fees such as GST, stamp duty, and exchange fees should be shown separately as statutory taxes. Previously, all these expenses were shown together, which lacked clarity for investors. The new system will provide complete clarity to investors.

Meanwhile, in 2025, factors such as significant fluctuations in international markets, political tensions, war situations, and decisions by the US severely impacted investors. As a result of this, the performance of mutual funds also declined, and many investors faced losses. In this context, analysts say that the latest changes introduced by SEBI will boost investor confidence and increase transparency and credibility in mutual funds. These rules will be of great help to those who choose mutual funds as a long-term investment.