Will new sebi rules reduce TER only for regular plans or for direct plans as well?

[Bhuvan]

@ron94

Since sebi has capped the TER based on fund size, will this reduce expense ratio’s of direct funds as well? And when will the new TER’s come into effect? @Bhuvanesh

Here’s the official Gazette Notification.

They shall come into force on the 1st day of April 2019.

Most of the AMCs have already made the changes, but maybe some were waiting in the wings.

Direct mutual funds just got much cheaper vs regular funds

SEBI just put out a circular on Total Expense Ratio (TER) and Disclosure for Mutual funds. Click this link. Monika Halan from livemint has put out her take on this circular in the below article. Written really well, do make sure to read. One of the key takeaways -the circular says that all fees and expenses in a direct plan under various heads, including the investment and advisory fees, should not be higher than the same expenses in a regular plan. What this means is this: those investing …