How much commission mutual fund distributors get from AMC?
The mutual fund commission agents can get anywhere between 0.1%-2% in the first year collectively including the trail commission for T30 and B30 for distribution of mutual funds to the investors. The commission for B30 clients is paid only for the first year and T30 is the regular commission which the distributor will be getting on the AUM till the investor remains invested.
The structure for commissions and brokerage can vary across AMC and mutual fund schemes. The updated structure or any changes are shared to advisors from time to time.
What is the commission for a mutual fund distributor?
The mutual fund distributor in India earns commission in the form of Trail Commissions directly from the Asset Management Companies(AMCs). Also, there can be additional SIP commissions which are paid only in the case of new investors registering their SIPs for the first time.
When is the commission paid to the mutual fund distributor?
The commission for selling mutual fund schemes to investors is generally paid to mutual fund distributors on a monthly basis by the AMCs. The commission is calculated on the AUM and is paid every month to the distributor as per the brokerage structure.
Is commission higher in B30 for mutual fund distributors?
The commission for distributor’s clients who live in “Below the Top 30 cities” as specified by the AMFI is high in the first year. To incentivise advisors for promoting mutual fund investments in small cities or towns of India, SEBI has permitted additional trail commission for the distributors but that is only applicable for the first year. After that the advisor will receive only the T30 trail commission structure.
