Brokerage Disclosure
How we are paid, by whom, and what it means for you as an investor. Published in line with the AMFI Code of Conduct for distributors.
Neeraj Jain (ARN-8522) is an AMFI Registered Mutual Fund & SIF Distributor. We distribute regular plans of mutual fund schemes and receive commission from the asset management companies whose schemes our clients invest in. We do not charge investors any fee.
How distributor commission works
Commission is paid by the AMC out of the scheme's expense ratio — it is not an additional charge deducted from your investment amount, and it is not billed to you separately. It is, however, a real cost, because the expense ratio of a regular plan is higher than that of the direct plan of the same scheme.
Commission today is almost entirely trail commission: a small annual percentage of the assets that remain invested through our ARN, paid for as long as you stay invested. Upfront commission on mutual fund schemes was discontinued by SEBI. This structure means our income depends on clients staying invested and their portfolios growing — not on transactions being churned.
Indicative trail commission ranges
| Scheme category | Indicative trail commission (per annum) |
|---|---|
| Equity schemes | 0.10% – 1.65% |
| Hybrid schemes | 0.10% – 1.50% |
| Debt schemes | 0.10% – 0.90% |
| Liquid and overnight schemes | 0.02% – 0.15% |
| Index funds and ETFs | 0.05% – 0.35% |
These ranges are indicative only. Actual rates are set by each AMC, vary by scheme and by the size of assets we hold with that AMC, and change from time to time. Exact commission earned on your own investments can be obtained from us on request, and AMFI also publishes distributor-wise commission data annually on its website. Clients can also see the actual commission paid on their investments in their respective Consolidated Account Statement (CAS) issued by AMFI. For our detailed commission structure, click here.
Commission disclosure for SIF
We are also an AMFI Registered Specialized Investment Fund (SIF) Distributor. SIF is a SEBI-regulated category that sits between mutual funds and portfolio management services, intended for investors seeking strategies with a higher minimum investment threshold. Our commission on SIF strategies is disclosed on the same trail-only basis as above.
| SIF strategy category | Indicative trail commission (per annum) |
|---|---|
| Equity-oriented SIF strategies | 0.50% – 1.65% |
| Hybrid SIF strategies | 0.25% – 1.50% |
| Debt-oriented SIF strategies | 0.25% – 0.65% |
As with mutual funds, these ranges are indicative only, are set by the investment manager of each SIF strategy, and can change from time to time. We do not charge investors any separate fee for SIF distribution.
Regular plans and direct plans
| Item | Regular plan | Direct plan |
|---|---|---|
| Distributor involved | Yes — through our ARN | No |
| Expense ratio | Higher | Lower |
| Commission paid to us | Yes | No |
| Servicing and support | Provided by us | Self-managed by the investor |
| Underlying portfolio | Identical — same scheme, same fund manager, same holdings |
Direct plans are available to every investor, directly from the AMC or through SEBI-recognised platforms, and carry a lower expense ratio. If you choose that route, you handle scheme selection, documentation, transactions and reviews yourself. We think our service is worth the difference; you are entitled to disagree, and to invest directly.
Conflicts of interest
Because commission rates differ between categories and between fund houses, a distributor could in principle be influenced to recommend a higher-paying scheme. We manage that risk as follows:
- Category selection is driven by the client's horizon and risk band under our published SOP, before any scheme — and therefore any commission rate — is considered.
- No employee is paid a sales incentive or target-linked commission. There is no sales team.
- We do not run scheme-specific campaigns or promotions tied to an AMC's incentive programme.
- Switching or churning a portfolio to generate transactions is not practised, and trail-based income gives us no reason to do so.
- You may ask us at any time what we earn on a scheme we have recommended, and we will tell you.
Our commitment. We will not recommend a scheme because it pays us more. If two schemes are comparable on our SOP filters, we will say so and let you decide. If you ever suspect otherwise, please raise it with us directly using our grievance process.
This disclosure is made in compliance with the AMFI Code of Conduct for Intermediaries of Mutual Funds and applicable SEBI requirements for mutual fund distributors. It was last reviewed for accuracy on the date this website was published.