A major change is going to be implemented in the Mutual Fund industry from 1 April 2026. SEBI has issued notification of new reforms changing the almost 30 years old framework. Their objective is to increase transparency, make investor disclosures clearer and strengthen the governance of fund houses. The most important change is that now the schemes will be able to charge Base Expense Ratio (BER) on the basis of performance, but there will be strict conditions of SEBI for this. Fund houses will have to provide complete information about expense structure and performance-linked charges. In the new rules, BER will be limited to only management fees, while expenses like brokerage, STT, stamp duty will be disclosed separately. Trading costs will be controlled by reducing brokerage limits. Accountability of trustees and senior management will increase, which will further strengthen investor confidence.
Mutual Funds will change from 1 April 2026. SEBI’s new rules explained. Money Live | Mutual Funds will change from April 1, 2026 | SEBI’s New Rules Explained
