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Rytvae Consulting — AMFI Registered Mutual Fund Distributor (ARN-265474), EUIN E091320
Why your fund’s expense ratio looks different since April
If you compared a fund’s expense ratio today against a figure you noted last year and concluded costs had fallen, pause. The presentation changed in April 2026, and the two numbers are not on the same basis.
What changed
Until April 2026, the Total Expense Ratio bundled together a range of costs into a single percentage. It was convenient, and it obscured what you were paying for.
From 1 April 2026 the disclosure is split. The Base Expense Ratio (BER) is the fee charged by the fund house for managing the scheme. Other costs — brokerage, and statutory charges such as GST, securities transaction tax and stamp duty — are shown separately rather than folded into one headline figure.
Why it matters
Two reasons, one obvious and one less so.
The obvious one: you can now see what the fund house charges for its work, separately from taxes and transaction costs that the fund house does not keep. Those are different kinds of cost and it is reasonable to look at them separately.
The less obvious one, and the practical trap: a BER figure published after April 2026 is not comparable with a TER figure published before it. If you compare the two, the newer number will tend to look lower simply because it excludes components the older number included. Nothing has necessarily improved. You would be reading a change in presentation as a change in cost.
A worked example
Take a hypothetical scheme where the old single figure was 1.20%. Suppose that comprised 0.95% charged by the fund house and 0.25% of brokerage and statutory charges. Under the new presentation the BER would show as 0.95%, with the remainder itemised separately.
An investor comparing "1.20% last year" against "0.95% now" would conclude costs had fallen by a quarter. In this illustration they have not fallen at all — the same total is being presented in parts. The figures here are assumed purely to show the arithmetic.
This illustration is hypothetical, uses assumed figures and is included only to explain a mechanism. It is not a projection. Past performance may or may not be sustained in the future and is not a guarantee of future returns.
Key highlights
- BER is the fund house’s own charge for managing the scheme.
- Brokerage and statutory charges — GST, STT, stamp duty — are itemised separately.
- Post-April 2026 figures are not directly comparable with pre-April TER figures.
- When comparing two funds, ensure both figures are on the same basis and from the same period.
- Cost is one input into a decision, not the decision.
What to check
- Whether any expense figure you are comparing is a BER or an old-basis TER.
- That both funds in a comparison are quoted on the same basis and for the same period.
- The separately itemised charges, not only the headline BER, if you want the full cost picture.
- The scheme’s updated Scheme Information Document, which carries the current disclosure format.
Frequently asked questions
Did my fund get cheaper in April 2026?
Not necessarily, and probably not for that reason. The presentation of costs changed, so a figure quoted now may exclude components that an older figure included. To know whether cost actually changed, compare figures on the same basis.
What is the difference between BER and TER?
The Base Expense Ratio is the fee the fund house charges for managing the scheme. The older Total Expense Ratio bundled that together with brokerage and statutory charges such as GST, STT and stamp duty, which are now shown separately.
Should I switch to a cheaper fund?
Cost matters, but it is one factor among several, and a switch has its own consequences — exit load, tax on gains, and the loss of a holding period. Whether any switch makes sense depends on your circumstances, so it is not a question an article should answer. Ask us and we will walk through the specifics with you.
Is this article investment advice?
No. It is investor-awareness content. Rytvae Consulting is an AMFI Registered Mutual Fund Distributor (ARN-265474, EUIN E091320) and not a SEBI-registered Investment Adviser. For a personalised recommendation, consult a SEBI-registered Investment Adviser or a qualified tax professional.
Original source
Securities and Exchange Board of India — SEBI (Mutual Funds) Regulations, 2026 — expense disclosure framework, effective 1 April 2026. Referred to for the factual content of this summary; all credit to the issuing authority.
Read the official releaseRytvae Consulting — AMFI Registered Mutual Fund Distributor (ARN-265474), EUIN E091320. This article is intended solely for investor education and awareness. It is based on publicly available information from official regulatory authorities and should not be construed as investment, legal, tax or financial advice, nor as a recommendation, offer or solicitation to buy or sell any scheme or security.
Rytvae Consulting is a distributor of mutual fund and insurance products and is not a SEBI-registered Investment Adviser; any assistance offered is incidental to distribution. Readers should assess their own circumstances and consult a SEBI-registered Investment Adviser or a qualified tax professional before making any investment decision.
Any figure or illustration shown is hypothetical and for explanation only. No return is assured or guaranteed. Past performance may or may not be sustained in the future and is not a guarantee of future returns.
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. See our full disclosures and disclaimers.