Trail Commission for Distributors - Win - Win situation for everyone involved

    Jan 1, 1970 12:00 AM 2 min read

    SEBI's recent board meeting has brought an interesting set of rules, optimistically labelled as 'reforms' for Mutual Fund Industry. While there has been mixed reviews on the same, from the way I see it, its gonna be a win-win situation for everyone involved including the investor.

    Here's how it gonna impact the industry:

    In mutual fund industry, there are 3 main participants: Asset Management Company (AMC), you i.e. the Investor & third is Distributor or Channel through which money is routed over to AMCs. AMCs typically get money through following participants:

    (a) Mutual Fund Distributors - This is an exhaustive list and it includes Private Banks, PSU Banks, National Distributors, Stock Brokers & Individual Financial Advisors (IFAs) 

    (b) Direct