The American mutual fund industry is around forty years older than ours and, hence, both more mature and more competitive. In the US, fund management fees have come down significantly. In fact, as shown in Exhibit 21, total expenses in the US (expressed as a percentage of assets under management) have fallen cumulatively by 40 per cent in the last two decades (left axis of the chart). In contrast, in India, expenses continue to be high (right axis of the chart). Apart from SEBI abolishing the upfront fees, it would appear that little has changed with respect to fund management charges.
Ind vs us comparison of mutual funds
