AMC Stocks Rally: HDFC AMC, ABSL AMC, Canara Robeco Share Price Jump as SEBI Cuts Mutual Fund Fees

Shares of asset management companies (AMCs) saw strong buying on Thursday morning after SEBI announced a cut in mutual fund expense ratios. HDFC AMC jumped over 4.5%, Aditya Birla Sun Life AMC rose around 2.5%, and Canara Robeco AMC surged more than 6% in early trade.

What Did SEBI Announce?

On December 17, 2025, SEBI decided to reduce the expense ratios that mutual funds can charge investors. This is a major change to long-standing rules and is aimed at encouraging more retail investors and improving transparency and compliance.

Introduction of Base Expense Ratio (BER)

SEBI has introduced the concept of a Base Expense Ratio (BER). Under this, statutory charges such as GST, stamp duty, SEBI fees, and exchange fees will be excluded from the expense ratio limits. This means these costs will no longer be added on top of the fund’s base fee.

Expense Ratios Cut Across Fund Categories

The regulator has reduced expense ratio limits across several categories, including index funds, ETFs, fund of funds (FoFs), equity-oriented schemes, closed-ended schemes, and other non-equity schemes. Revised limits are lower than earlier caps, making mutual funds cheaper for investors.

Read More: Silver ETFs See Strong Gains in 2025 as UTI and ICICI Prudential Funds Lead the Rise.

Why Are AMC Stocks Rising?

Lower expense ratios can lead to higher net asset values (NAVs) for investors. This may encourage more people to invest in mutual funds, increasing overall assets under management (AUM). Higher AUM and a growing investor base are positive for AMCs in the long term.

Conclusion

SEBI’s move to cut mutual fund fees has improved sentiment around AMC stocks. Lower costs for investors could drive higher inflows into mutual funds, supporting long-term growth prospects for asset management companies.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.