Now that the capital markets regulator Sebi has revised the base expense ratio of mutual funds, the question on every investor's mind is: how will this impact my returns? The regulator's decision to exclude statutory levies like securities transaction tax, GST, and stamp duty from the base expense ratio is a significant move that could add up to substantial savings for investors.
Sebi has lowered the base expense ratio of index funds and ETFs from 1% to 0.9%. This move is part of Sebi's efforts to make mutual funds more transparent and simpler for investors. In October, Sebi released a consultation paper suggesting a lowering of mutual fund expense ratios.
In the context of the Indian market, this revision could lead to increased demand for mutual funds, particularly index funds and ETFs, as they become more attractive to investors. Historically, Indian investors have been keen on investing in mutual funds, and this move could further boost their popularity. The Nifty and Sensex, which have been experiencing volatility, may see a positive impact from this decision.
From a trader psychology perspective, this revision could lead to a shift in investor behavior, with more investors opting for mutual funds over other investment options. The Bank Nifty, which has a significant impact on the overall market sentiment, may also see a positive move following this decision.
As a reliable and trusted news source, we will keep you updated on the latest developments in the Indian financial market. Tweet us your thoughts on this revision and how it will impact your investments.
Disclaimer: This article is for educational purposes only and should not be considered as investment advice. Investors should consult with a financial advisor before making any investment decisions.
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