Commission Disclosure

The Association of Mutual Funds in India (AMFI) mandates that all mutual fund distributors (MFDs) adhere to a transparent and ethical framework when dealing with investors. This policy ensures that distributors disclose relevant brokerage details to investors and operate in a manner that prioritizes investor interests.

  • Mutual fund distributors must act in the best interests of investors by maintaining transparency in their dealings. They should avoid conflicts of interest and ensure that investors receive unbiased advice regarding mutual fund investments.
  • Distributors are required to disclose all commissions received from Asset Management Companies (AMCs), including upfront commissions trail commissions and any other incentives received from AMCs. This disclosure ensures that investors are fully informed about any compensation structures that could influence investment recommendations.
  • As per AMFI guidelines, mutual fund distributors are strictly prohibited from offering rebates or passing back any commission to investors, providing gifts, incentives, or any other forms of inducement to attract investors. Such practices are deemed unethical and are strictly regulated to maintain investor trust and market integrity.
  • Distributors must adhere to ethical business practices and avoid encouraging excessive transactions to earn higher commissions, splitting applications to gain additional transaction fees, providing misleading or false information about mutual fund products. Strict compliance with these guidelines helps safeguard investors and ensures fair market practices.
  • Mutual fund distributors must comply with all applicable SEBI and AMFI circulars, notifications, and guidelines. Regular updates and adherence to evolving regulatory frameworks are essential to ensure compliance and maintain investor confidence.

This brokerage disclosure policy is designed to uphold the highest standards of transparency and ethical conduct in mutual fund distribution. Investors are encouraged to review all disclosed commissions and seek clarity from their distributors regarding any potential conflicts of interest.