AMFI-registered Mutual Fund Distributor · ARN-140079 — Mutual fund investments are subject to market risks. Read all scheme related documents carefully.
Home / Compliance / Commission Structure
Full transparency

How we're paid — our commission structure.

We earn a commission from the Asset Management Company (AMC), not from you. It's already built into the regular plan's expense ratio — never an extra charge deducted from your investment. Here are the indicative ranges, in plain numbers.

Paid by the AMC

The fund house pays us — you never write us a cheque or pay a separate fee.

Inside the expense ratio

It's part of the scheme's TER, not an additional deduction on top of it.

Same units, either way

The commission doesn't change the units you're allotted or the NAV you get.

The numbers

Indicative commission ranges by fund category

Commission is paid mostly as an ongoing trail — a small percentage per year of the amount you keep invested, for as long as you stay invested. Rates are set by each AMC and vary by scheme; the figures below are typical industry ranges, expressed as % per annum.

Fund category
0%0.5%1.0%1.5%2.0%
Trail p.a.
Equity fundsLarge / flexi / mid / small-cap
ELSS (tax-saving)Equity, 3-year lock-in
Hybrid fundsBalanced advantage / aggressive
Debt fundsShort / corporate bond
Index funds & ETFsRegular plans
Liquid / overnightParking surplus cash

Ranges above are indicative of prevailing industry practice and are shown for transparency and education — they are not a quote, an offer, or a fixed rate for any particular scheme. The actual commission for any scheme is decided solely by the concerned AMC, can change from time to time, and may fall outside these ranges. Some schemes may also pay a small one-time/upfront component within regulatory limits. The exact commission earned on your investments is disclosed to you on request and in the half-yearly Consolidated Account Statement (CAS) sent by the AMC/RTA.

A worked example

What this means for ₹1,00,000 invested.

Suppose you invest ₹1,00,000 in a regular equity fund whose total expense ratio (TER) is, say, 1.70% a year. That whole 1.70% is charged by the AMC within the fund — and our trail commission is a slice inside it, not on top.

  • You are not billed separately — nothing extra leaves your account.
  • A direct plan of the same fund simply has a lower TER (no distributor slice).
  • Our trail continues only while you stay invested — so our interest is in keeping you invested well, not churning.
Illustrative annual breakdown · ₹1,00,000
Fund's total expense ratio (TER)≈ ₹1,700
AMC / fund costs
Our trail
Our trail commission
≈ ₹700/yr
Extra charge to you
₹0

Illustrative figures only, assuming a 1.70% TER and a ~0.70% trail. Actual TER and commission vary by scheme and AMC and are disclosed in the scheme documents and your CAS.

The honest comparison

Regular vs Direct plans

Both hold the same portfolio. The difference is the distributor commission — and the guidance that comes with it. We'll always let you decide.

Regular plan

Includes our trail commission within the TER — and, with it, ongoing guidance, onboarding, service and a steady hand through volatile markets.

  • Slightly higher expense ratio
  • Personal, goal-based guidance included
  • We handle paperwork, KYC & reviews

Direct plan

No distributor commission, so a marginally lower expense ratio — but you research, transact and monitor everything entirely on your own.

  • Slightly lower expense ratio
  • No advice or hand-holding
  • Fully self-directed & self-served
How we keep it fair

Our commitments on commission

No churning

We don't move you between schemes to generate fresh commission. Our trail rewards keeping you invested well.

Disclosed on request

Ask us the commission on any scheme and we'll tell you. It also appears in your half-yearly CAS from the AMC/RTA.

Category, not commission-led

We suggest fund categories that fit your goals and risk profile — never the ones that simply pay us more.

No advisory fee

We are a distributor, not a fee-charging adviser. You never pay us a separate advisory or distribution fee.

See also our full Compliance & Disclosures and the FAQ on fees .

Want the exact commission on a scheme you hold?

Just ask — we'll share it plainly, along with the difference between the regular and direct plan.

Ask us anything

The commission ranges on this page are indicative of prevailing industry practice, are for education and transparency only, and do not constitute a quote or a commitment. Commission rates are determined solely by the respective AMCs, are subject to change, and may differ from the figures shown. Magathi Financial Services Private Limited is an AMFI-registered Mutual Fund Distributor (ARN-140079, EUIN-E198959) and is not a SEBI-registered Investment Adviser; nothing here is investment advice. We earn commission/brokerage from AMCs for the schemes we distribute; this is embedded in the regular plan's expense ratio and is not an additional charge. Mutual fund investments are subject to market risks; read all scheme related documents carefully.