Commission Disclosure

No separate fee or bill is charged by Pagdiwala Investments for the mutual fund distribution service described on this page. Pagdiwala Investments receives a trail commission from the fund house when you invest through it in a Regular Plan. This commission forms part of the scheme’s expense ratio and is reflected in the scheme’s Net Asset Value (NAV).

Mutual fund distributor commission is the compensation paid by a mutual fund house to a distributor for investments made through a Regular Plan. As explained on this page, Pagdiwala Investments receives trail commission calculated as a percentage of the value of the investment. The commission is paid by the fund house and is included in the scheme’s expense ratio; investors do not receive a separate commission bill.

A Regular Plan includes distributor commission, while a Direct Plan of the same mutual fund scheme does not include distributor commission and has a lower expense ratio. The page states that investors can invest in a Direct Plan directly with the fund house. Pagdiwala Investments helps clients invest only in Regular Plans.

Trail commission is an ongoing annual commission calculated as a percentage of the value of an investment. For example, if an investment is worth ₹10 lakh and the applicable trail commission rate is 1% per year, the indicative commission would be about ₹10,000 over the year. The actual rate depends on the scheme. The commission is deducted gradually from the scheme’s assets as part of its expense ratio and is reflected in the NAV.

No. The Commission Disclosure page states that Pagdiwala Investments does not receive upfront or advance commission. Its disclosed mutual fund commission is trail-based and is paid periodically by the fund house.

The fund house pays the trail commission to the distributor. According to the disclosure, the commission is paid from the scheme’s expense ratio and is paid to Pagdiwala Investments monthly. It is not presented as a separate bill issued to the investor.

The page displays indicative annual trail commission ranges: active equity and hybrid funds, 0.50%–1.50%; passive funds such as index funds, ETFs and fund of funds, 0.20%–0.70%; debt and gold funds, 0.20%–0.80%; and liquid and overnight funds, 0.05%–0.25%. The SIF range is shown as a placeholder on the supplied page. These figures are indicative, vary by scheme and fund house, and should be checked against the latest dated commission schedule.

No. The disclosure explains that commission rates vary by scheme and fund house and may change from time to time. Pagdiwala Investments states that it informs clients of the commission it would receive on a recommended scheme and on the comparable schemes considered before making a recommendation.

You can refer to the scheme-wise Mutual Fund commission schedule linked in the Current Commission Schedules section of the page. The disclosure says that Pagdiwala Investments prepares these schedules. You can also ask Pagdiwala Investments for the commission applicable to a specific scheme and the comparable schemes considered. Check the effective date shown on the relevant schedule.

No. The Commission Disclosure page states that the displayed annual trail commission rates exclude GST. The rates apply to the period stated in the relevant commission schedule and may change when a fund house revises them.