Investors in India are currently facing higher Total Expense Ratios (TER) in mutual funds due to new reporting guidelines from the Securities and Exchange Board of India (SEBI), which took effect on April 1. Previously, fund houses reported only base expenses and the Goods and Services Tax (GST) on those expenses. Now, the TER must include brokerage, transaction costs, and statutory levies, providing a more comprehensive view of the costs associated with managing a mutual fund. This change aims to enhance transparency for investors. As a result, on days with high trading activity, such as in arbitrage or equity savings funds, investors may see spikes in the reported TER, even if the base expenses remain stable. Investors are advised to focus on the base expense ratio for a clearer understanding of ongoing costs, as temporary spikes in TER may not reflect permanent increases.