AMCs  are  permitted to charge  expenses  upto a  maximum of  2.25% in case of Equity funds and 2% in case of Debt funds. But some AMCs were charging higher expenses.SEBI had instructed the AMCs to reduce the expenses ratio effective from 1^st April 2019 and the AMCs have reduced the expenses .The expenses of some of the  schemes in   case  of both   Regular plans  and Direct Plans effective 5^th April 2019 are as follows.AS may be observed the difference between regular and Direct Plans are commission paid to the Distributors (Banks and Individual agents)

Sr.No	Funds	Expenses ratio (%)		Difference (Commission)
		Regular	Direct
1	ABSl Equity Hybrid 95 Fund	1.76	1.03	0.73%
2	ABSL Frontline Equity Fund	1.99	1.11	0.88%
3	Axis Long Term Equity Fund	1.77	0.66	1.11%
4	Franklin India Equity Fund	1.78	0.91	0.87%
5	HDFC Balanced Advantage Fund	1.78	1.11	0.67%
6	HDFC Equity Fund	1.79	1.23	0.56%
7	HDFC Hybrid Equity Fund	1.81	1.12	0.69%
8	HDFC Mid Cap Opportunities Fund	1.88	1.06	0.82%
9	HDFC Top 100 Fund	1.85	1.33	0.52%
10	ICICI Pru Balance Advantage Fund	1.65	1.14	0.51%
11	ICICI Pru Bluechip fund	1.72	1.21	0.51%
12	ICICI Pru Debt & Equity Fund	1.65	1.03	0.62%
13	ICICI Pru Multi Asset Fund	1.8	1.16	0.64%
14	ICICI Pru Value Discovery Fund	1.76	1.26	0.50%
15	Kotak Standard Multi Cap Fund	1.77	0.73	1.04%
16	Motilal Oswal Multicap 35 Fund	1.86	0.96	0.90%
17	Reliance Equity Hybrid Find	1.89	0.99	0.90%
18	Reliance Larger Cap Fund	2.06	1.22	0.84%
19	SBI Blue Chip Fund	1.94	1.09	0.85%
20	SBI Equity Hybrid Fund	1.94	1.08	0.86%

It is good news to all investors in Mutual Fund that SEBI is actively monitoring the expenses ratios. Further SEBI has also    started monitoring credit risk exposures and has made liquid Fund securities of more than 60 days marked to market. Any deterioration in credit quality of securities  will get reflected in NAVs of the schemes. But the recent rollover of part of the Kotak FMPs has raised concerns since the FMP securities are not marked to market and payable at the end of the term. The Risk Reward phenomena gets enforced here. If you desire higher return and avail indexed tax benefits in FMPs, you may have to take a call on the credit risk. The exposure by Mutual Fund AMCs in Zee Entertainment, Dish TV and Essel  Propack are  less than 2% and   will     not impact the  NAVs much. Further Zee group chairman has sought time upto Sept 2019 to pay back all the amounts, which have been agreed to by the stakeholders including the AMCs. The advisers should be more careful now on the credit risk   exposures by   Mutual Funds after the ILFS event and should continue to   be vigilant. Investors should understand that higher return comes with risk. The basics in Investment i.e Risk Profiling, Goal horizon, Asset Allocation and  Diversification  should be  key in  investment  decisions.  It is  best  left to  Advisers.   Investors  should  look  for qualified,  professional  and  experienced  Investment  Advisers.  Still  better  are  those  who  promote  unbiased  products  having  no commission  (Online Life Insurance  Term Plans  and Direct Mutual Funds)   and  have  transparency   by  charging  only  fee from the clients. SEBI Registered Investment Advisers fit into this category.