Table of Contents
What is commission for MF distributor?
Typically mutual fund distributors earn around 1\% commission on the value of their clients’ equity schemes and 0.5\% on debt schemes.
What are 12 B 1 fees?
So-called “12b-1 fees” are fees paid out of mutual fund or ETF assets to cover the costs of distribution – marketing and selling mutual fund shares – and sometimes to cover the costs of providing shareholder services. 12b-1 fees get their name from the SEC rule that authorizes a fund to charge them.
Do mutual funds take commission?
If your financial advisor is a broker, the answer is yes. When you purchase a mutual fund with a sales load, part of that additional expense is used by the mutual fund company to pay a commission to the advisor. Additionally, most mutual funds charge a 12b-1 fee as part of their expense ratio collected each year.
Does Zerodha charge commission for mutual funds?
Zerodha doesn’t charge any commission for investing in Mutual Funds. Zerodha launched the Coin platform for direct mutual fund investment in April 2017. By investing in direct mutual fund schemes, investors can save significantly on commission paid as against buying regular mutual funds.
How do I become a mutual fund agent?
To become an MF advisor, follow these simple steps:
- Register for the NISM exam. Candidates wishing to become MF advisors should first register for the National Institute of Securities Market (NISM) VA Mutual Funds Distributors Certification Exam.
- Pass the NISM Exam.
- Know Your Distributor.
- Register with AMCs or Distributors.
How is trail commission paid?
Trail commission—what a distributor earns directly from the asset management company (AMC)—is a fixed percentage of your cumulative investment in the fund. It can range from 0.1-1 per cent. For example, if your investment in a fund is Rs 10 lakh and the AMC pays 0.5 per cent trail commission, your agent earns Rs 5,000.