Indian Asset Managers Gain as Regulator Relaxes Mutual Fund Fee Rule

Indian asset managers saw broad-based buying interest after the securities market regulator relaxed parts of the mutual fund fee framework, allowing greater flexibility in how asset management companies structure and charge fees. This easing is being interpreted as marginally positive for revenue visibility and operating leverage, especially for larger players with strong AUM franchises.

In early trade, leading listed AMCs gained in the range of roughly 0.43% to 2.48%, outpacing key benchmark indices and signaling a re-rating bias from investors. Market participants expect the regulatory shift to reduce near-term pressure on fund economics, even as longer-term themes like competitive intensity, passive flows, and compliance costs remain in focus.

Key Highlights

Asset management stocks up about 0.43%–2.48% in early trade, outperforming the broader market.

Regulator relaxes mutual fund fee rules, giving AMCs more flexibility in fee structures and cost allocation.

Change seen as earnings-supportive, aiding margins and return ratios for established fund houses.

Sentiment turns positive on the sector, with expectations of improved profitability and potential re-rating.

Source: Real-time market price action and news updates from Reuters and Indian financial news wires.