Is it possible for a retail investor to know how much trailing commission was paid to distributors against each of his/her portfolios with each fund house? How can I get that info? If not, why is this not being allowed?
- Arvind Padhye
No, you cannot obtain this information as mutual funds are not required to disclose these details to investors at the moment. However, you need not worry about trail commission because it is factored in the expense ratio which is explicitly stated by all funds. It is not a hidden cost affecting the Net Asset Value (NAV) of your scheme. Trail commissions from equity funds ranges between 0.20 and 1 per cent, and in debt funds it varies between 0.10 and 1 per cent. A mutual fund distributor is paid commission as long as investor's money is held in the fund.
This article was originally published on January 19, 2016.
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