MF Commission Disclosure

Disclosure of Commission/Brokerage

INDICATIVE TRAIL COMMISSION BY SCHEME TYPE

Scheme Type	Trail – 1st Year	Trail – 2nd Year onwards
Equity Funds	0.10%-1.50%	0.10%-1.50%
ELSS	0.10%-1.25%	0.15%-1.1%
Hybrid Funds	0.05%-1.10%	0.05%-1.10%
Arbitrage Funds	0.05%-0.60%	0.05%-0.60%
Debt Funds	0.05% – 0.80%	0.05% – 0.80%
Fixed Maturity Plans	0.05%-0.50%	0.05%-0.50%
Fund of Funds	0.05%-1.00%	0.05%-1.00%
Gilt Funds	0.05%-0.65%	0.05%-0.65%
Hybrid Debt/Monthly Income Plans	0.05%-0.75%	0.05%-0.75%
Income Funds	0.01%-1.0%	0.05%-1.0%
Index Funds	0.01%-0.60%	0.0%-0.75%
Liquid/Ultra Short Term Schemes	0.01%-0.65%	0.05%-0.65%
Short Term Income Funds	0.01%-0.65%	0.05%-0.65%

For the detailed scheme-wise commission on Mutual Funds as of August 2026, please click here

The commission rates provided are indicative and updated based on information received from the respective Asset Management Companies (AMCs). Rates are subject to applicable GST, clawback, and revision by AMCs from time to time without prior notice. The scheme-wise disclosure above sets out the applicable commission rates for individual schemes and may be relied upon for reference. A printed copy is also available at our office upon request. SFPL has opted out of transaction charges; accordingly, no transaction charges will be deducted by AMCs for transactions under SFPL’s ARN code. This information is for general information only and does not constitute investment, financial, legal, or tax advice. Mutual fund investments are subject to market risks, and investors should carefully read all scheme-related documents before investing. Mutual fund prices and NAVs may fluctuate based on market conditions, and past performance does not guarantee future results. Any investment proposals prepared by Sanriya Finvest Pvt. Ltd. (SFPL) are based on information provided by the client and their stated objectives and preferences. Clients may accept or reject such proposals and should consult appropriate legal, investment, and tax advisors before making investment decisions.

Brokerage Disclosure in CAS: The brokerage paid to mutual fund distributors is mentioned in the Consolidated Account Statement (CAS) sent to investors, for the half-year ending in March or September, the CAS includes gross commissions paid by mutual funds and AMCs. This includes direct payments and benefits like gifts, rewards, trips, or event sponsorships.

Commission Calculations: Trail commissions are calculated daily based on the distributor’s assets under management (AUM) and paid monthly. These commissions come from the expense ratio, which is deducted daily. Investors don’t bear additional costs, as funds explicitly disclose the expense ratio. No hidden fees impact the Net Asset Value (NAV). Distributors earn commissions as long as the investor remains in the fund. Distributors pay *18% GST on the payouts they receive from mutual funds.

How is the trail commission calculated?

The trail commission is calculated using the following formula: Trail Commission = (Daily Product × Rate/100 × 1/365)

For example:
The daily product is calculated by multiplying the balance units by the cumulative tentative NAV.

Let’s assume a Mutual Fund Distributor (MFD) invests in a mutual fund on 1st January 2024 by procuring 10,000 units at an annual commission rate of 0.50%, with a cumulative NAV of 10 for the entire month. The fund performed well in February, and its NAV increased to Rs 20 for the entire month. However, in March, the fund performed poorly, and its NAV dropped to Rs 5 for the whole month.

So, the commission for each month would be:

January: Commission = (10,000 × 10 × 0.50% × 31/365) = ₹42.46
February: Commission = (10,000 × 20 × 0.50% × 28/365) = ₹76.71
March: Commission = (10,000 × 05 × 0.50% × 31/365) = ₹21.23
The commission is directly linked to the NAV and the mutual fund’s performance. If the fund performs well, the NAV increases, leading to a higher commission for the MFD. On the other hand, if the fund underperforms, like in March, when the NAV dropped to 5, the commission significantly decreases.

This creates a win-win situation for both the investor and the MFD:

For the investor: They benefit from better returns if the fund performs well.
For the MFD: Their brokerage increases when the fund performs better.
This performance-based structure ensures that the MFD prioritizes the investor’s wealth. If the investor earns, the MFD also benefits. The MFD’s earnings are directly linked to their ability to choose and manage high-performing funds, ensuring mutual growth.

Even with the best fund, they have failed to create wealth, Investment Returns vs Investors Returns > Behavior Gap