Mutual Fund Expense Ratio Truth

Hema Kulkarni

KF Mentor
Recently there were a lot of discussions around the expense ratio of Mutual Funds. Even SEBI proposed to overhaul and simplify the expense ratio for investors.

From what I understand, expense ratio of a Mutual Fund is the simply the cost of managing a fund (AMC's fees, Legal Charges, Distribution Cost, etc) and is clearly mentioned everywhere.

I don't understand what was the entire confusion around this. Can someone please explain the Real Truth of Expense Ratio in Mutual Funds? Am i missing something here?