The new financial year has brought major changes for mutual fund investors.
Starting April 1, 2026, SEBI’s new “Mutual Fund Regulations 2026” come into effect across India.
These rules will change how fund houses calculate and show the fees and expenses charged to investors.
While your investment scheme itself remains the same, the way expenses are shown and deducted will be different.
Let’s break down what has changed and what investors need to know.
Total Expense Ratio Gets a New Name
SEBI has retired a rule that has been in place for nearly 30 years.
What you used to know as the Total Expense Ratio (TER) will now be called the Base Expense Ratio (BER).
The idea is simple: fund houses now have to clearly show how your money is being used.
Fees, brokerage, and government taxes will be disclosed separately.
This makes mutual funds more transparent and removes hidden charges that investors were unaware of before.
How Top Fund Houses Are Adapting
Quant and JM Financial – Quant has updated all mandatory documents, focusing on Annual Scheme Recurring Expenses (ASRE).
JM Financial has revised investment management and advisory fees.
ICICI Prudential and Aditya Birla Sun Life – ICICI has updated recurring expense rules for all schemes.
Aditya Birla has restructured the entire TER framework.
Investment strategies remain unchanged, only expense reporting has been updated.
Baroda BNP Paribas and PGIM India – Both have revamped how expenses are calculated, aiming to give investors a clearer picture of costs.
Invesco and Edelweiss – Invesco revised annual recurring expenses, while Edelweiss restructured its TER system.
Investors are advised to read the new documents carefully before investing.
What Investors Need to Know
This new rule marks a more transparent and trustworthy era for mutual funds.
Investors will now be able to see exactly how each rupee of their money is being spent.
Checking the updated expense ratios on your fund house’s website is essential.
Lower expenses mean more profit in the long run, so staying informed can make a real difference to your investment returns.
