HDFC AMC, ABSL to Canara Robeco: AMC stocks rise as SEBI cuts mutual funds fee
Published on 18/12/2025 09:32 AM
Stock market today: A day after the Indian capital markets regulator, the Securities and Exchange Board of India (SEBI), on Wednesday, 17 December 2025, decided to cut the expense ratio for mutual funds, AMC stocks in India witnessed strong buying during the early morning session on Thursday. The AMC major HDFC AMC share price surged over 4.50% during the opening bell, while Aditya Birla Sun Life (ABSL) AMC went up around 2.50%. Meanwhile, Canara Robecco Asset Management Company shares skyrocketed over 6%.
SEBI decided on Wednesday to reduce brokerage costs that mutual funds can charge investors, a long-standing norm, in an effort to boost retail investors' participation and improve compliance.
Mutual fund expense ratio limits, now known as Base Expense Ratio (BER), will exclude all statutory levies, including GST, Stamp Duty, SEBI fees, Exchange fees, and other charges, according to the official announcement.
The total expense ratio will not be the sum of the BER along with the brokerage, regulatory, and statutory levies, as per Sebi's recent announcement.
Sebi has cut the expense ratios for Index Funds, Exchange Traded Funds (ETFs), Fund of Funds (FoF), Equity-oriented scheme funds (investing >65% of AUM), Other FoFs, Closed-ended schemes, and Other than equity-oriented schemes.
On why AMC stocks are rising after SEBI's move to cut mutual fund fees, Avinash Gorakshkar, a SEBI-registered fundamental equity analyst, said, “After this SEBI's move to cut the expense ratio of the AMCs, these asset management companies will have more money in hand (AUM) for investing. Apart from this, investors will get more NAVs after the reduction in AMCs' fees. So, people are expected to add more to the mutual funds, which will benefit AMCs' annual AUM holdings and clientele.”
The Indian capital market regulator, SEBI, on Wednesday decided to reduce the mutual fund expense ratio fee, a long-standing norm, in an effort to boost retail investors' participation and improve compliance.
Mutual fund expense ratio limits, now known as Base Expense Ratio (BER), will exclude all statutory levies, including GST, Stamp Duty, SEBI fees, Exchange fees, and other charges, according to the official announcement.
The total expense ratio will not be the sum of the BER along with the brokerage, regulatory, and statutory levies, as per Sebi's recent announcement.
Sebi has cut the expense ratios for Index Funds, Exchange Traded Funds (ETFs), Fund of Funds (FoF), Equity-oriented scheme funds (investing >65% of AUM), Other FoFs, Closed-ended schemes, and Other than equity-oriented schemes.
Current (Including statutory levies) — 1.00%
Revised (excluding statutory levies) — 0.90%
Funds investing in liquid schemes/index funds/ETFs
Current (including statutory levies) — 1.00%
Revised (excluding statutory levies) — 0.90%
Current (including statutory levies) — 2.25%
Revised (excluding statutory levies) — 2.10%
Current (including statutory levies) — 2.00%
Revised (excluding statutory levies) — 1.85%
AUM up to ₹500 crore (Equity Oriented)
Current (including statutory levies) — 2.25%
Revised (excluding statutory levies) — 2.10%
Current (including statutory levies) — 2%
Revised (excluding statutory levies) — 1.85%
AUM between ₹500-750 crore (Equity Oriented)
Current (including statutory levies) — 2%
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