SEBI MF Total Expense Ratio caps under Regulation 52

Sun, 17 May 2026 00:00:00 +0000

Regulation 52 of the SEBI (Mutual Funds) Regulations, 1996 establishes the Total Expense Ratio (TER) cap framework that governs the maximum annual expenses chargeable by Indian mutual fund schemes. The TER cap framework defines, by scheme type and AUM tier, the upper bound on the percentage of average daily net assets that an AMC can charge to investors as scheme expenses. The framework is one of the principal investor-protection mechanisms in Indian mutual fund regulation, designed to prevent excessive expense charges and ensure cost transparency.

Total Expense Ratio of Indian mutual funds

Sat, 16 May 2026 00:00:00 +0000

The Total Expense Ratio (TER) is the annual percentage of a mutual fund scheme’s daily net assets that the asset management company (AMC) is permitted to charge as the aggregate cost of managing and operating the scheme. In the Indian regulatory framework, TER is governed by Regulation 52 of the SEBI (Mutual Funds) Regulations, 1996 , read with the SEBI Master Circular on Mutual Funds (most recently reissued in May 2024) and a sequence of substantive amending circulars issued in September 2012 and October 2018. TER is a hard, slab-based cap on the recurring expenses an AMC may charge to a scheme, and is the single most consequential expense disclosure in the Indian mutual fund industry.

Total Expense Ratio on WebNotes

SEBI MF Total Expense Ratio caps under Regulation 52

Total Expense Ratio of Indian mutual funds