Sebi cuts mutual fund expense ratios — Here's what you need to know

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India’s capital markets regulator, the Securities and Exchange Board of India (Sebi), on Wednesday, 17 December 2025, decided to cut the charges of the expense ratios in mutual funds, revising its long-standing norms in an effort to boost retail investors’ participation and improve compliance.

Mutual fund expense ratio limits, which are now known as Base Expense Ratio (BER), will exclude all the statutory levies like GST, Stamp Duty, SEBI fees, Exchange fees, among other charges, according to the official announcement.

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The total expense ratio will not be the sum of the BER along with the brokerage, regulatory, and statutory levies, as per Sebi’s recent announcement.

Sebi has cut the expense ratios for Index Funds, Exchange Traded Funds (ETFs), Fund of Funds (FoF), Equity-oriented scheme funds (investing >65% of AUM), Other FoFs, Closed-ended schemes, and Other than equity-oriented schemes.

List of updated MF Expense Ratios

1. Index funds Exchange Traded Funds (ETF)

Current (Including statutory levies) — 1.00%

Revised (excluding statutory levies) — 0.90%

2. Fund of Funds (FoFs)

Funds investing in liquid schemes/index funds/ETFs

Current (including statutory levies) — 1.00%

Revised (excluding statutory levies) — 0.90%

Funds investing ≥ 65% of AUM in equity-oriented schemes

Current (including statutory levies) — 2.25%

Revised (excluding statutory levies) — 2.10%

Other FoFs

Current (including statutory levies) — 2.00%

Revised (excluding statutory levies) — 1.85%

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3. Open-ended schemes

AUM up to ₹500 crore (Equity Oriented)

Current (including statutory levies) — 2.25%

Revised (excluding statutory levies) — 2.10%

AUM up to ₹500 crore (Other-than Equity Oriented)

Current (including statutory levies) — 2%

Revised (excluding statutory levies) — 1.85%

AUM between ₹500-750 crore (Equity Oriented)

Current (including statutory levies) — 2%

Revised (excluding statutory levies) — 1.90%

AUM between ₹500-750 crore (Other-than Equity Oriented)

Current (including statutory levies) — 1.75%

Revised (excluding statutory levies) — 1.65%

AUM between ₹750-2,000 crore (Equity Oriented)

Current (including statutory levies) — 1.75%

Revised (excluding statutory levies) — 1.60%

AUM between ₹750-2,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 1.50%

Revised (excluding statutory levies) — 1.40%

AUM between ₹2,000-5,000 crore (Equity Oriented)

Current (including statutory levies) — 1.60%

Revised (excluding statutory levies) — 1.50%

AUM between ₹2,000-5,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 1.35%

Revised (excluding statutory levies) — 1.25%

AUM between ₹5,000-10,000 crore (Equity Oriented)

Current (including statutory levies) — 1.50%

Revised (excluding statutory levies) — 1.40%

AUM between ₹5,000-10,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 1.25%

Revised (excluding statutory levies) — 1.15%

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AUM between ₹10,000-15,000 crore (Equity Oriented)

Current (including statutory levies) — 1.45%

Revised (excluding statutory levies) — 1.35%

AUM between ₹10,000-15,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 1.20%

Revised (excluding statutory levies) — 1.10%

AUM between ₹15,000-20,000 crore (Equity Oriented)

Current (including statutory levies) — 1.40%

Revised (excluding statutory levies) — 1.30%

AUM between ₹10,000-15,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 1.15%

Revised (excluding statutory levies) — 1.05%

AUM between ₹20,000-25,000 crore (Equity Oriented)

Current (including statutory levies) — 1.35%

Revised (excluding statutory levies) — 1.25%

AUM between ₹20,000-25,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 1.10%

Revised (excluding statutory levies) — 1%

AUM between ₹25,000-30,000 crore (Equity Oriented)

Current (including statutory levies) — 1.30%

Revised (excluding statutory levies) — 1.20%

AUM between ₹25,000-30,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 1.05%

Revised (excluding statutory levies) — 0.95%

AUM between ₹30,000-35,000 crore (Equity Oriented)

Current (including statutory levies) — 1.25%

Revised (excluding statutory levies) — 1.15%

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AUM between ₹30,000-35,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 1%

Revised (excluding statutory levies) — 0.90%

AUM between ₹35,000-40,000 crore (Equity Oriented)

Current (including statutory levies) — 1.20%

Revised (excluding statutory levies) — 1.10%

AUM between ₹35,000-40,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 0.95%

Revised (excluding statutory levies) — 0.85%

AUM between ₹40,000-45,000 crore (Equity Oriented)

Current (including statutory levies) — 1.15%

Revised (excluding statutory levies) — 1.05%

AUM between ₹40,000-45,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 0.90%

Revised (excluding statutory levies) — 0.80%

AUM between ₹45,000-50,000 crore (Equity Oriented)

Current (including statutory levies) — 1.10%

Revised (excluding statutory levies) — 1%

AUM between ₹45,000-50,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 0.85%

Revised (excluding statutory levies) — 0.75%

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AUM greater than ₹50,000 crore (Equity Oriented)

Current (including statutory levies) — 1.05%

Revised (excluding statutory levies) — 0.95%

AUM greater than ₹50,000 crore (Other-than Equity Oriented)

Current (including statutory levies) — 0.80%

Revised (excluding statutory levies) — 0.70%

4. Closed-ended schemes

Equity-oriented schemes

Current (including statutory levies) — 1.25%

Revised (excluding statutory levies) — 1.00%

Other than equity-oriented schemes

Current (including statutory levies) — 1.00%

Revised (excluding statutory levies) — 0.80%