For instance, in 2009, SEBI struck down the entry loads on mutual funds, forcing distributors to change their business models, and the value chain over the next decade became more manufacturer-oriented. The excesses in the system in terms of commissions to distributors or manufacturers normalised over the years. With the role of passive and factor-based strategies coming in and the sheer size growing, net returns of manufacturers did not get affected, but the economies of scale passed on to the investors, reducing their cost of investing even further, to 0.75-0.8% for the same AUM.
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