AMFI REGULATORY DISCLOSURE / ARN-188499 / SEBI CIRCULAR NO. SEBI/HO/IMD/DF2/CIR/P/2018/137
Complete Transparency in Mutual Fund Distribution, Trail Remuneration Structure & Disciplined Long-Term Investor Handholding.
ARN-188499
QPFP® Certified
Zero Direct Fees
Direct AMC Trail Payout
STATUTORY CATEGORY-WISE STRUCTURE
In accordance with SEBI circulars and AMFI Code of Conduct, below is the standard range of gross commission (trail brokerage) payable across various mutual fund categories distributed through our Financial Services.
BALANCED & DYNAMIC
Conservative, Aggressive, Balanced Advantage, and Multi-Asset allocation
schemes.
Gross Trail Commission Range
Per annum on average daily AUM
GROWTH & COMPOUNDING
Large Cap, Mid Cap, Flexi Cap, Small Cap, Sectoral, and ELSS Tax-Saver schemes.
Gross Trail Commission Range
Per annum on average daily AUM
CAPITAL PROTECTION
Corporate Bond, Short Duration, Money Market, Banking & PSU, and Target Maturity.
Gross Trail Commission Range
Per annum on average daily AUM
LIQUIDITY & PASSIVE
Liquid Funds, Overnight Funds, Index Funds, ETFs, and Fund of Funds (FoF).
Gross Trail Commission Range
Per annum on average daily AUM
There is often confusion about how mutual fund distributors earn commissions. This calculator is designed to make the trail commission structure easier to understand through simple, illustrative calculations.
When you invest through a Regular Plan, the mutual fund distributor may receive trail commission from the Asset Management Company (AMC). It is generally linked to the assets under management (AUM) and the applicable scheme-specific commission rate. It is not a separate bill paid directly by the investor to the distributor.
No. A fund should be selected based on the investor’s goals, risk profile, investment horizon, asset allocation and other relevant scheme and AMC factors—not simply on the commission it pays. Commission rates can differ across schemes and may change over time.
Trail commission is generally calculated on the applicable assets under management. As a portfolio grows, the amount may increase; if its value falls or the applicable rate changes, the commission may decrease. A larger long-term figure reflects an ongoing investment relationship and accumulated assets—not necessarily a large upfront earning from one investor.
The value of an MFD relationship goes beyond starting a SIP. It can include:
Zero direct billing. Everything flows through institutional AMC accounting strictly within SEBI TER limits.
Client capital is invested directly into AMC schemes at the prevailing Net Asset Value (NAV). 100% of the allocated capital enters units.
The AMC deducts the Total Expense Ratio (TER) daily from the scheme's net assets, covering fund management, custody, audit, and distribution.
The AMC disburses the trail commission from the TER pool to NABHA Financial Services for ongoing periodic reviews, handholding, and reporting.
Simulate realistic multi-decade compounding, compare Regular vs Direct cost spreads, and see the exact daily trail compensation earned over decades of continuous handholding.
Includes realistic cyclical drawdowns (e.g. -6% in Yr 3, -8% in Yr 9) to display real rupee-cost averaging unit accumulation.
*The cumulative trail figure represents 15-30 years of daily continuous monitoring, compliance reporting, rebalancing, and emotional anchoring. It is never an upfront deduction.
| Financial Goal | Schemes | Monthly SIP | Lump Sum | Est. Maturity Value |
|---|
The difference between Regular Plan and Direct Plan is the exact trail remuneration paid by the AMC to the MFD for advisory handholding.
| Scheme | Regular TER | Direct TER | Difference (Spread) | MFD Trail Brokerage |
|---|
Witness how negative return years turbocharge unit accumulation via rupee-cost averaging.
| Year | Year Return | Invested (Cum.) | Units Added | Ending NAV | Portfolio Value | AMC Trail Fee |
|---|
**Disclaimer:** The figures generated by this calculator are illustrative estimates based on the inputs provided, assumed market returns, investment tenure, expense ratios, applicable tax considerations, and estimated trail commission structures. Actual investment returns, taxation, expenses, and commission rates may vary depending on the scheme, AMC, distributor agreement, investor profile, prevailing regulations, and individual circumstances. Commission rates and remuneration structures may differ across mutual fund distributors and are subject to applicable SEBI and AMFI guidelines. The calculator does not guarantee returns or constitute investment or tax advice. Investors should consult a qualified financial professional for personalized guidance.
Explore how a fixed monthly investment buys different numbers of units as NAV moves up and down.
NAV paths are hypothetical and are used only to demonstrate rupee cost averaging. They are not market forecasts or actual fund data.
| Month | NAV (₹) | SIP (₹) | Units bought | Total units | Portfolio value (₹) |
|---|
For this demonstration, each SIP is assumed to be invested at that month's illustrative NAV, with no taxes, transaction charges or exit load included. Real investment values can rise or fall.
TER is the scheme's total expense ratio. It is not the same as an individual distributor's trail commission. Refer to the AMC's latest scheme documents for current TER and details.
The value of a mutual fund distributor relationship extends far beyond initiating an investment. It is anchored in continuous guidance, behavioral discipline, and life-stage alignment.
Mapping capital to specific milestones—child education, retirement, family security—rather than speculative chasing of short-term returns. Portfolios are structured with defined horizons and liquidity contingencies.
Periodic rebalancing and asset allocation reviews to ensure risk exposure matches evolving time horizons. Preventing accidental concentration in overperforming sectors and re-anchoring to risk tolerance.
Acting as a steady behavioral anchor during sharp market corrections, preventing panic redemptions. Maintaining conviction when headlines are turbulent preserves compound growth trajectories.
Guiding clients through market noise, greed at market peaks, and fear during downturns. Ensuring systematic SIP continuity without arbitrary market-timing interruptions that erode long-term compounding.
Re-evaluating financial plans when income, family responsibilities, health priorities, or regulatory conditions change. Proactive assistance with nomination updates, transmission processes, tax efficiency, and smooth cross-generation wealth transfer.
Goal-based wealth advisory and personalized financial architecture. Cultivating discipline, clarity, and peace of mind for families and enterprise leaders.
Regulatory Disclaimer: Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Nilesh Vadnere is an AMFI Registered Mutual Fund Distributor (ARN-188499). Registration granted by AMFI and certification by QPFP in no way guarantee the performance of schemes or provide assurance of returns to investors.
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