Business Sebi caps maximum fee, will mutual funds get cheaper now? Updated : September 20, 2018 06:37 AM IST At the moment, most fund houses pay an upfront commission as high as two percent. Companies would ideally pass on the majority of this TER cut to distributors like they did in June, when the fees were cut by 15 bps. Equity funds form 40 percent of total funds and drive 70 percent of the industry revenue. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.