Shares of Indian asset managers experienced a decline of up to 5.4 percent on Wednesday, as analysts expressed concerns regarding potential impacts on profitability following proposed changes to mutual fund fee structures by the country’s markets regulator.
HDFC Asset Management Company led the losses with a drop of 5.4 percent, marking its largest single-day loss since June 2024. Similarly, Nippon Asset Management faced a decline of 2.8 percent.
Analysts from Jefferies indicated that these regulatory changes could result in a reduction of profit before tax by approximately 30-33 percent for the two firms by 2027.
The Securities and Exchange Board of India (SEBI) has put forth a consultation paper outlining proposed modifications to mutual fund fee structures, including adjustments to the expense ratio and brokerage fees, aimed at achieving greater transparency in cost breakdowns for investors.
The proposed changes reflect SEBI’s ongoing efforts to enhance the investment environment and protect investors in the mutual fund sector.
Published on October 29, 2025.
