The asset management sector in India has seen robust growth, with the industry’s assets under management (AUM) reaching approximately ₹75.6 lakh crore (₹75.6 trillion) as of September 2025. This represents over a threefold increase in just five years, driven by rising financial awareness and increased participation in systematic investment plans (SIPs), which contribute significantly to sustained inflows and market stability.
SEBI Proposal
Today, the asset management company’s shares have seen bearish movement after SEBI proposed changes to mutual fund expense ratios, raising investor concerns about potential margin pressures and profitability impact across the asset management industry.
However, SEBI’s proposal to reduce mutual fund expense ratios aims to make investing more cost-efficient for investors. The expense ratio represents the fee charged for managing a fund, expressed as a percentage of total AUM. Lowering these costs means a larger portion of investor money goes directly into investments, potentially improving long-term returns and enhancing transparency and fairness in the mutual fund industry.
Furthermore, the market regulator plans to significantly reduce brokerage fee limits for mutual funds, cutting the cap on cash market transactions from 12 basis points to 2, and on derivative trades from 5 to 1. The move aims to enhance cost efficiency, improve investor returns, and promote greater transparency in fund operations.
The new proposal mandates fund houses to conduct non-mutual fund management activities through separate business units to ensure operational clarity and regulatory compliance. Additionally, statutory levies such as STT, GST, and stamp duty will remain excluded from the overall expense ratio limits, maintaining transparency and preventing overlap in expense accounting for investors.
SEBI has also proposed that performance-linked expense ratios will tie mutual fund fees to the scheme’s actual performance. This reform aims to improve transparency, reduce hidden costs, and ensure fund managers’ earnings align with investor returns. It encourages accountability, rewarding better fund performance while protecting investors from excessive fixed management charges.
Here are the AMC stocks slumping after SEBI’s proposal to reduce mutual fund expense ratios:
| Company Name | CMP (Rs) | Decreased % |
| HDFC Asset Management Company Ltd | 5,370 | 5 |
| Aditya Birla Sun Life AMC Ltd | 776 | 4.22 |
| UTI AMC Ltd | 1,273 | 2.34 |
| Nippon Life India AMC Ltd | 855 | 5.49 |
| Canara Robeco Asset Management Company Ltd | 326.35 | 4 |
Written by Abhishek Singh
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