Sebi cuts mutual fund expense ratios - Check updated rate list here

The Securities and Exchange Board of India (Sebi), the regulatory body for India's capital markets, announced on Wednesday, December 17, 2025, a reduction in expense ratios for mutual funds. This revision of long-standing norms aims to attract more retail investors and enhance compliance within the industry.

According to the official announcement, the revised mutual fund expense ratio limits, now termed the Base Expense Ratio (BER), will not include statutory levies. These levies encompass GST, stamp duty, SEBI fees, and exchange fees, among other charges.

Sebi clarified that the total expense ratio will not be calculated by simply adding the BER to brokerage, regulatory, and statutory levies.

The regulator has reduced expense ratios across various categories, including Index Funds, Exchange Traded Funds (ETFs), Fund of Funds (FoF), Equity-oriented schemes (funds investing more than 65% of their assets under management or AUM in equity), other FoFs, closed-ended schemes, and schemes that are not equity-oriented.

Here's a breakdown of the updated mutual fund expense ratios:

• Index Funds & Exchange Traded Funds (ETFs)**
• Current (Including statutory levies): 1.00%
• Revised (Excluding statutory levies): 0.90%

• Fund of Funds (FoFs)**
• Funds investing in liquid schemes/index funds/ETFs*
• Current (including statutory levies): 1.00%
• Revised (excluding statutory levies): 0.90%
• Funds investing ≥ 65% of AUM in equity-oriented schemes*
• Current (including statutory levies): 2.25%
• Revised (excluding statutory levies): 2.10%
• Other FoFs*
• Current (including statutory levies): 2.00%
• Revised (excluding statutory levies): 1.85%

• Open-Ended Schemes**
• AUM up to ₹500 crore*
• Equity Oriented*
• Current (including statutory levies): 2.25%
• Revised (excluding statutory levies): 2.10%
• Other-than Equity Oriented*
• Current (including statutory levies): 2%
• Revised (excluding statutory levies): 1.85%
• AUM between ₹500-750 crore*
• Equity Oriented*
• Current (including statutory levies): 2%
• Revised (excluding statutory levies): 1.90%
• Other-than Equity Oriented*
• Current (including statutory levies): 1.75%
• Revised (excluding statutory levies): 1.65%
• AUM between ₹750-2,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.75%
• Revised (excluding statutory levies): 1.60%
• Other-than Equity Oriented*
• Current (including statutory levies): 1.50%
• Revised (excluding statutory levies): 1.40%
• AUM between ₹2,000-5,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.60%
• Revised (excluding statutory levies): 1.50%
• Other-than Equity Oriented*
• Current (including statutory levies): 1.35%
• Revised (excluding statutory levies): 1.25%
• AUM between ₹5,000-10,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.50%
• Revised (excluding statutory levies): 1.40%
• Other-than Equity Oriented*
• Current (including statutory levies): 1.25%
• Revised (excluding statutory levies): 1.15%
• AUM between ₹10,000-15,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.45%
• Revised (excluding statutory levies): 1.35%
• Other-than Equity Oriented*
• Current (including statutory levies): 1.20%
• Revised (excluding statutory levies): 1.10%
• AUM between ₹15,000-20,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.40%
• Revised (excluding statutory levies): 1.30%
• Other-than Equity Oriented*
• Current (including statutory levies): 1.15%
• Revised (excluding statutory levies): 1.05%
• AUM between ₹20,000-25,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.35%
• Revised (excluding statutory levies): 1.25%
• Other-than Equity Oriented*
• Current (including statutory levies): 1.10%
• Revised (excluding statutory levies): 1%
• AUM between ₹25,000-30,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.30%
• Revised (excluding statutory levies): 1.20%
• Other-than Equity Oriented*
• Current (including statutory levies): 1.05%
• Revised (excluding statutory levies): 0.95%
• AUM between ₹30,000-35,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.25%
• Revised (excluding statutory levies): 1.15%
• Other-than Equity Oriented*
• Current (including statutory levies): 1%
• Revised (excluding statutory levies): 0.90%
• AUM between ₹35,000-40,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.20%
• Revised (excluding statutory levies): 1.10%
• Other-than Equity Oriented*
• Current (including statutory levies): 0.95%
• Revised (excluding statutory levies): 0.85%
• AUM between ₹40,000-45,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.15%
• Revised (excluding statutory levies): 1.05%
• Other-than Equity Oriented*
• Current (including statutory levies): 0.90%
• Revised (excluding statutory levies): 0.80%
• AUM between ₹45,000-50,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.10%
• Revised (excluding statutory levies): 1%
• Other-than Equity Oriented*
• Current (including statutory levies): 0.85%
• Revised (excluding statutory levies): 0.75%
• AUM greater than ₹50,000 crore*
• Equity Oriented*
• Current (including statutory levies): 1.05%
• Revised (excluding statutory levies): 0.95%
• Other-than Equity Oriented*
• Current (including statutory levies): 0.80%
• Revised (excluding statutory levies): 0.70%

• Closed-Ended Schemes**
• Equity-oriented schemes*
• Current (including statutory levies): 1.25%
• Revised (excluding statutory levies): 1.00%
• Other than equity-oriented schemes*
• Current (including statutory levies): 1.00%
• Revised (excluding statutory levies): 1.00%