Key Points
The Securities and Exchange Board of India (SEBI) may negatively impact India's mutual fund sector with its proposal to review total expense ratio (TER) regulations, according to brokerage Nuvama..
The sector's net profitability could fall by up to 27% from listing asset managers' 2024-25 net operating profits due to changes potentially increasing annual fees to include items such as securities transaction tax (STT) and brokerage..
The capital market regulator's proposed review of the total expense ratio (TER) regulations of domestic mutual funds may result in listed asset managers' FY25 net operating profits dropping by up to 27%, according to brokerage Nuvama..
The Securities and Exchange Board of India's (SEBI)s proposal is expected to squeeze the profitability of these mutual funds as it wants fund houses to include securities transaction tax (STT), brokerage, and goods & service tax (GST) into TER..
According to Nuvama, HDFC AMCs FY25 estimated operating profits will likely fall by 27.2%, while Nippoin and Aditya Birla Mutual Funds' operating profits may drop by 25.1% and 20.9%, respectively...
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