I would like to know how much commission I will end up paying to my agent when I put lumpsum money in Axis Equity, Axis Long Term Equity, ICICI Pru Focussed Bluechip Equity. Is there some way I can avoid paying commission? I believe that I still have to pay trail commission either to agent or the company, in case of SIPs.
You can avoid paying any commission to your agent by investing in the direct plans of these schemes either through lumpsum or SIPs. To invest in the Direct plan you need to approach the branch office of the fund house on your own or invest through the fund’s website. Agents earn two types of commissions from mutual funds. There could be an upfront commission which is not paid by you, but by the AMC out of its own pocket. Plus, there is a trail commission (included in the fund’s expense ratio) paid to the agent for every year you remain the scheme. By buying a direct plan, you can avoid both.