What do mutual fund brokers charge?

What do mutual fund brokers charge?

Generally, the charges are 2.25\% of the investment value. However, as per a recent regulation by the SEBI, fund houses can no longer charge an entry load.

What is sub broker in mutual fund?

SUB-BROKER: shall mean all persons or entities, selling mutual fund units, but obtaining brokerage or other consideration through a Principal Intermediary All provisions of this Guidelines shall apply mutatis mutandis to such an Intermediary, except where otherwise stated.

What is mutual fund Subaccounting?

Mutual funds or their service providers often enter into arrangements with financial intermediaries to compensate them for providing these services, which are sometimes referred to as “sub-accounting” arrangements.

What is the difference between broker and sub broker?

A sub broker carries out the same function a broker carries out, being the middleman between two parties. However, while a stock broker is the middle man between an investor and the stock exchange, a sub broker is the middle man for the stock broker and the investor.

Is sub broker profitable?

A sub broker can earn nearly 60 per cent of the income a broker makes on any given transaction provided it is the right broker. The more established the broker and their system, the better it is for the sub broker. Choosing the right partner is at the heart of earning a good sub broker income.

What is the purpose of using sub accounts?

A sub account is often used to compartmentalize larger accounts, thereby allowing for better tracking of various budget details and expenses. For ease of record-keeping, a company might set up sub accounts for each of its departments.

What is sub account?

A sub-account is an optional 1-5 character attribute that can be used to break down an account into multiple smaller accounts for better tracking of detailed budgets and expenses. Sub-accounts can be used to record any accounting or budget transaction.

Can mutual fund distributor charge fees?

A mutual fund distributor (MFD) cannot call himself /herself an adviser, unless s/he is registered with Sebi as a registered investment adviser (RIA). An MFD cannot charge advisory fees from clients, instead he is remunerated by the mutual fund by way of commissions and cannot advice clients.

How can I invest in mutual funds without paying commission?

Direct Plans are for those who prefer to invest DIRECTLY in a mutual fund scheme without the help of any distributor/agent. Investing in a Direct Plan is like buying a product from the manufacturer directly, whereby the cost to customer would be lower.

How much is the mutual fund agent commission?

How much is the mutual fund agent commission? The difference in expense ratio between the Regular plan and Direct plan is the brokerage commission that goes to the mutual fund broker/agent. From this, we get the mutual fund agent commission rate which is at – 0.5\% to 1\% of your investment value.

What is the difference between a sub-broker and a broker?

Although the underlying function between the two is the same, there are some finer differences between them and are important to note: A broker is a person or more commonly a firm that works independently whereas sub-broker works under a broker acting as an agent.

Should you invest in mutual funds directly or through a broker?

If you are investing in mutual fund schemes directly, you will be charged less management fees by the mutual funds company. Therefore your returns in direct plans will be slightly better than the returns you make in regular plans through a mutual fund broker. So you may want to know, “How to buy mutual funds without a broker or agent”.

What is the MF agent commission structure?

According to the MF agent commission structure, this is the commission that the agent will get from the Asset Management Company or Mutual fund companies in the first year. And this commission is included in the total expense incurred in the mutual funds.