Mutual Fund Distributor Commission
Mutual Fund Distributor Commission
Blog Article
Mutual fund distributors play a pivotal role in connecting investors with fund houses. They earn commissions based on the volume of investments they bring.
Types of mutual fund distributer Commission :
- Upfront Commission: A one-time payment for new investments.
- Trail Commission: Recurring income based on the investor’s portfolio value.
SEBI Regulations
SEBI has implemented stringent regulations to ensure transparency and fairness in commission structures. Distributors are required to disclose commissions to investors, fostering trust and accountability.
While commissions incentivize distributors, investors should focus on the value and advice provided rather than the costs involved. Report this page