InvestorQ : WealthBucket.in a mutual fund agency offering me as a mutual fund distributor. They will provide me online flatform, where I can enroll mutual fund application s for my clients who are the investers. Imayget 0.5 To 0.7 percent commission. Advise me
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WealthBucket.in a mutual fund agency offering me as a mutual fund distributor. They will provide me online flatform, where I can enroll mutual fund application s for my clients who are the investers. Imayget 0.5 To 0.7 percent commission. Advise me

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Aastha Awasthi answered.
10 months ago


A MF distributor is an organization/person who acts as an intermediary between the investor and mutual fund companies. In return, these distributors are paid trail commission/ upfront commission.

Generally, mutual fund companies offer a commission ranging from 0.5% to 1% on the total net worth of assets under management. This payout is depending upon the nature of the company, it’s the scale of operations, it’s customer groups, it’s products and several other factors.

Suppose, around 100 investors are there under the scheme and total assets under management are Rs.10 crore and the trail commission is 0.5%, the mutual fund distributor will receive Rs.5,00,000 annually. However, if this changes over time, the amount shall be increased or decreased accordingly. This is to protect investors from the wrong decisions of the distributors.
Alternatively, you can also look at becoming a business partner with IIFL like me. By using IIFL’s tablet-based application ‘Advisor, Anytime, Anywhere.’ (‘AAA’), one can become a sub-broker, but so much more along with it. And the best part about it is that you can work from your comfort. You can check further details about it following this link (https://www.iifl.com/securities/business-partners/aaa/faq.php).

So, as per the above prevailing rates and other information, it should be your decision whether to accept the membership or not. Keeping in view, all aspects and reading the terms and conditions laid down by the company.