What an Indian fund costs, how a SIP runs and which statements to keep
A short guide to fund costs under SEBI's rules in force since 1 April 2026, to SIP, SWP and STP, and to the statements and records a holder abroad should save.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on November 5, 2026.
Families abroad often ask what a fund costs, how a SIP (systematic investment plan) runs and which statements to keep. The Three-Slip Fund Folder keeps the answers together. Costs follow SEBI's rules in force since 1 April 2026.
- Fund costs are capped as a Base Expense Ratio (BER); taxes and exchange fees come on top.
- A Direct plan skips distributor commission, so its cost is lower.
- No entry load; an exit load cannot top 3% of NAV.
- Statements follow India's April-to-March year, and NAV is worked out in rupees.
What it costs
| Cost | Rule | Since |
|---|---|---|
| BER cap, equity-oriented funds | 2.10% a year on the first Rs 500 crore, falling to 0.95% above Rs 50,000 crore | 1 April 2026 |
| BER cap, other open-ended funds | 1.85% falling to 0.70%; index funds and ETFs 0.90% | 1 April 2026 |
| Exit load | At most 3% of NAV (it was 5%) | 1 November 2025 |
| Stamp duty on units issued | 0.005%, on each SIP instalment too | 1 July 2020 |
| STT on selling equity-oriented units | 0.001%, paid by the seller | Current |
Source: our arithmetic, invented figures
The last two differ by about Rs 2.34 lakh.
SIPs and statements
| Topic | Rule |
|---|---|
| Cut-off | Most schemes: money in the scheme's account by 3 pm earns that day's NAV (liquid and overnight: 1:30 pm, previous day's NAV) |
| SIP changes | Cancelled within 2 days; stopped after 3 missed monthly debits; paused online since SEBI's letter of 26 April 2023 |
| NRI payments | Own account only. SEBI has no NRI SIP rule; FEMA picks the account, and some fund houses restrict U.S. and Canada residents |
| UPI | NPCI's 1 October 2026 circular covers NRE and NRO accounts with mobile numbers of 31 countries, including the USA, Canada and the UK; each fund house decides |
| Statements | CAMS sends gain and transaction files for the funds it services, and CAMS with KFintech send the CAS. None is labelled for foreign tax. U.S. and Canadian returns use the calendar year |
Our checklist
The Three-Slip Fund Folder holds three slips per holding:
- Fee slip: plan, current expense ratio and exit load.
- Instalment slip: each SIP date, units, NAV, rupee amount and duties. Every instalment is its own purchase for Indian tax.
- Statement slip: the CAS and gain statement for each Indian year, and the rupee rate you used.
Mistakes people make
- Reading 2.25% falling to 2.10% as a cost cut. The old caps included statutory levies; the new ones exclude them.
- Waiting for a foreign tax statement. We found none; use the transaction file.
Your Indian CA can confirm India-side costs; we handle the U.S. side. Check figures each April.
Common questions
Can I pause a SIP from abroad?
Yes, online. SEBI's letter of 26 April 2023 asks fund houses to offer an online cancel and pause feature. Pause length and top-ups are fund house rules.
Can an NRI start a SIP?
SEBI has no separate rule. Payments come from your own account, and some fund houses limit U.S. and Canada residents.
Do Indian statements show dollars?
Not on the request pages we read. NAV is in rupees, so converting it is the holder's job.
Official sources
- SEBI: Mutual Funds Regulations, 2026 (consolidated to 10 October 2026)
- SEBI: Master Circular for Mutual Funds, 20 March 2026
- SEBI: FAQs on stamp duty on securities
- Income Tax Department: Securities Transaction Tax, section 98
- CAMS: Capital gain and capital loss statement
- KFintech: Consolidated account statement
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