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Pricing Power in AMC Industry In India

SEBI regulates the Total Expense Ratio that can be incurred in managing Mutual Fund Schemes. The table above shows the maximum expense ratio that is allowed for different funds. These expense ratios are calculated as a percentage of NAV and include all the costs of running the Mutual Fund – Sales and Marketing, Advertising Expenses, Distributor expenses, transaction costs, administrative costs, investment management fees and so on. 

However, different companies have differing power about how much do they pay distributors to sell their products.

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