Asset managers stare at over 1 bps erosion in profit yields or 5-10% impact on PAT; profitability will, however, remain strong. Mutual fund distributors may face up to a 3-bps shrinkage in revenue yield or as much as a 10% impact on PAT.
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Securities and Exchange Board of India (SEBI), aiming to enhance transparency and lower investor costs, released
a consultation paper on October 28, 2025, proposing draft mutual fund regulations.
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ICRA expects the proposed measures to moderately impact AMC revenue yields, which typically range between
40-50 bps (net of distribution costs).
Exhibit : Net impact on revenue yields for asset managers
Source: ICRA Research; ^ adjusted for the share borne by distributors
