The change has been made in accordance with para 11.4 of the SEBI Master Circular for Mutual Funds dated March 20, 2026, regarding change and disclosure of Base Expense Ratio, read with Regulation 66(7) of the SEBI (Mutual Funds) Regulations, 2026.
As per the notice, the BER has been revised across a wide range of schemes spanning equity, debt, hybrid, and passive fund categories, with changes applicable to both Regular and Direct Plans in varying degrees.
Among the debt schemes, the Mirae Asset Ultra Short to Short Term Fund (formerly Mirae Asset Low Duration Fund) will see its Regular Plan BER rise from 0.72% to 0.74%, and its Direct Plan from 0.17% to 0.18%. The Mirae Asset Dynamic Term Fund’s Regular Plan BER moves up from 0.84% to 0.86%, while its Direct Plan rises from 0.14% to 0.16%. The Mirae Asset Short Term Fund (formerly Short Duration Fund) will see its Regular Plan increase from 0.88% to 0.90% and Direct Plan from 0.21% to 0.23%.
The Mirae Asset Healthcare Fund’s Regular Plan BER has been revised from 1.64% to 1.65%, with no change in its Direct Plan at 0.44%. The Mirae Asset Long Term Fund (formerly Long Duration Fund) sees a bigger jump, with its Regular Plan BER rising from 0.62% to 0.67%.
Several large equity schemes see no change in Regular Plan BER but a marginal rise in Direct Plan BER — the Mirae Asset Large Cap Fund’s Direct Plan moves from 0.51% to 0.52%, the Mirae Asset Flexi Cap Fund’s from 0.43% to 0.46%, and the Mirae Asset Midcap Fund’s from 0.50% to 0.52%.
Among passive funds, the Mirae Asset Nifty 50 Index Fund’s Direct Plan BER rises from 0.08% to 0.09%, while several thematic and sectoral ETFs, such as the Mirae Asset BSE Select IPO ETF (0.28% to 0.37%), Mirae Asset BSE 200 Equal Weight ETF (0.26% to 0.36%), and Mirae Asset Nifty India Internet ETF (0.26% to 0.33%), see sharper increases.
The notice added that investors can access complete scheme-wise disclosures relating to BER on the fund house’s website under Downloads>>Statutory Disclosures>>Total Expense Ratio.
FAQ: Understanding Base Expense Ratio (BER)
What is Base Expense Ratio (BER)?
The Base Expense Ratio refers to the fixed portion of the Total Expense Ratio (TER) that a mutual fund scheme charges investors to cover its recurring operating costs — such as fund management fees, administrative expenses, and other permissible charges — before adding variable components like performance-linked fees or additional expenses permitted under SEBI norms.
How is BER different from Total Expense Ratio (TER)?
BER forms the base or core component of the overall expense ratio charged to investors. The TER may include additional charges over and above the BER, subject to SEBI-prescribed limits, depending on scheme size, category, and other regulatory allowances.
How is the expense ratio calculated?
The expense ratio is calculated as a percentage of a scheme’s average net assets under management (AUM) over a period, and is charged proportionately to the Net Asset Value (NAV) of the fund. A change in BER directly impacts the daily NAV computation of the scheme.
Why does BER differ between Regular and Direct Plans?
Regular Plans include distributor commission as part of the expense structure, since investments are routed through intermediaries. Direct Plans, where investors invest directly with the fund house without an intermediary, carry a lower expense ratio since no distribution commission is payable.
Who regulates changes in BER?
Changes in BER are governed by SEBI’s Master Circular for Mutual Funds and the SEBI (Mutual Funds) Regulations, which mandate that any revision be disclosed to investors in advance, along with the effective date from which the revised BER will apply.
How is expense ratio linked to taxation?
The expense ratio itself is not separately taxed; it is deducted from the scheme’s returns before the NAV is calculated, effectively lowering the returns received by investors. Taxation on mutual fund investments applies separately, based on capital gains realised at the time of redemption, as per the applicable holding period and fund category under the Income Tax Act.
Does a change in BER affect existing investments?
Yes. Since BER impacts the NAV calculation of a scheme, any revision applies to all investors in that scheme, including existing unit holders, from the effective date specified in the notice, in this case, September 29, 2026.