Shares of Indian asset managers fell as much as 5.4 per cent on Wednesday, with analysts warning of a potential hit to profitability after the country’s markets regulator proposed changes to mutual fund fee structures.
HDFC Asset Management Company led losses among pack with a 5.4 per cent decline and was set to lose the most in a day since June 2024.
Nippon Asset Management fell 2.8 per cent.
Analysts at Jefferies said that the move could bring down profit before tax by about 30-33 per cent for these two firms in 2027.
The Securities and Exchange Board of India (SEBI) has proposed changes to mutual fund fee structures, including the expense ratio and the brokerage fee, as it sought a more transparent break-up of costs that investors are charged, according to a consultation paper.