New Delhi, Sept. 21 -- If you invest in mutual funds and make transactions through UPI, there is a new charge you should know about from 15 October 2026.

A 0.02% Merchant Discount Rate (MDR) will apply to capital-market transactions, including payments towards mutual funds, subject to a maximum charge of Rs.300 per transaction. The charge is intended to be borne by the merchant and not the investor.

Eshaan Lazarus, Founder & CEO, 021 Trade, said that under the announced framework, investors should not bear the MDR, as it is a merchant-side cost deducted by the acquiring bank when settling funds with the asset management company (AMC) or platform.

But if the charge is passed on to investors, how would it affect the amount invested and t...