New Delhi, July 1 -- At the Moneycontrol Mutual Fund Summit 2026 held in Mumbai on 30 June, Securities and Exchange Board of India Executive Director Manoj Kumar highlighted an interesting development for the mutual fund industry. He said SEBI has already created a framework that allows fund houses to adopt a performance-based fee structure, but surprisingly, the industry has shown very little interest in it so far.

"We have created an enabling provision for a performance-based incentive structure. Mutual funds are governed by Total Expense Ratio (TER) limits, but we have included an enabling clause that allows you to earn if you perform. However, neither the industry nor other stakeholders have spoken much about it," he said.

This rais...