How I earn ? #
I am an AMFI-registered Mutual Fund Distributor (ARN-171491). I do not charge you a fee. Instead, when you invest in a regular mutual fund plan through me, the fund house pays me a small ongoing commission called a trail commission — typically between 0.5% and 1% per year of your invested amount.
This commission is already built into the fund’s expense ratio. It is not an additional charge on top of what you pay. If you invested in the same regular plan through any other distributor, the fund house would pay them the same commission. You are not paying more by coming to me.
What this means for you — in plain numbers ? #
If you have ₹10 lakhs invested through me, my annual trail commission is roughly ₹5,000 to ₹10,000 per year. That number grows as your portfolio grows, and it shrinks if your portfolio shrinks.
There are no entry charges, no exit charges from my side.
Why this does not bias my advice ? #
This is the right question to ask, and here is my honest answer.
My income grows when your portfolio grows. My commission is a percentage of your portfolio value. If I recommend poor funds and your portfolio underperforms, my income suffers alongside yours. We are financially aligned.
Switching funds reduces my income, not increases it. Trail commission is earned on your existing holdings over time. Every time a distributor switches you into a new fund, the commission clock on the old fund stops. I have a direct financial reason to keep you in good funds for the long term rather than churn your portfolio unnecessarily.
Commission rates across fund categories are similar. SEBI regulations mean there is no meaningful difference in commission between recommending one equity fund over another. I do not have a financial incentive to push a specific fund based on what it pays me.
You can verify every transaction. Every fund switch, every new investment, every redemption is visible to you in real time through CAMS, MF Central, or your investment app. Nothing happens in your portfolio without your knowledge and instruction.
MFD vs RIA — what is the difference? #
There are two types of registered investment professionals in India who can help you with mutual funds.
An MFD (Mutual Fund Distributor) like me is registered with AMFI. I earn a trail commission from fund houses. You pay nothing directly to me.
An RIA (Registered Investment Adviser) is registered with SEBI. They charge you a fee directly — either a flat annual amount or a percentage of your assets under advice — and earn no commission from fund houses.
Neither model is inherently better. The right choice depends on your situation.
| MFD | RIA | DIY Direct | |
|---|---|---|---|
| What you pay directly | Nothing | Annual fee or % of AUM | Nothing |
| Who pays the advisor | Fund house | You | No one |
| Ongoing guidance | Yes | Yes | No |
| Regulated by | AMFI | SEBI | — |
| Best suited for | Investors who want guidance without upfront fees | Larger or complex portfolios needing comprehensive advice | Disciplined, experienced investors with a clear strategy |
Why I chose the MFD model #
I chose to work as an MFD because it removes a barrier that stops many people from getting financial guidance at all. When advice carries a visible upfront fee, people hesitate — especially those who are just starting out or are unsure whether they need an advisor.
The trail commission model lets me offer meaningful, ongoing guidance without that friction. It also keeps my incentives naturally aligned with yours: I only continue earning if you stay invested, which means my job is to keep you on track through market cycles, not to generate paperwork or transactions.
The direct plan question — answered honestly #
Direct plans have a lower expense ratio than regular plans — typically 0.5% to 1% less per year. This is exactly the commission I described above. Over a long investment horizon on a large corpus, this difference compounds into a meaningful number. I will not pretend otherwise.
Direct plans may be the right choice for you if:
- You have a clear investment strategy and the knowledge to execute it
- You can select, monitor, and rebalance funds on your own
- You will not panic-sell during a 30% market correction
- You do not need someone to review your portfolio against your life goals
Platforms like Kuvera, Zerodha Coin, and MF Central make direct investing straightforward. If the above describes you, I would encourage you to use them.
Regular plans through me may make more sense if:
- You want someone to build a goal-based plan and stay accountable to it
- You want a second opinion before making large financial decisions
- You have experienced the urge to exit during market falls and wish you had not
- Your time is better spent on your career than researching funds
The honest question is not “which plan has a lower expense ratio” but “what is the total cost of the mistakes I might make without guidance.” That is a personal calculation, and I am happy to work through it with you.
What I will always do #
- Show you the expense ratio of every fund I recommend
- Tell you when a direct plan would meaningfully save you money for your specific situation
- Never switch your funds without explaining why in plain language
- Share my AMFI registration details and let you verify them independently
- Give you a full cost breakdown as part of your free portfolio review
I am not the right fit for everyone #
If you prefer to pay a transparent fee and receive advice with zero commission involvement, an SEBI-registered RIA will serve you better. SEBI maintains a public list of registered RIAs at sebi.gov.in.
What I offer is guided, goal-based investing with full transparency about how I earn — and a genuine commitment to your long-term outcomes over my short-term income.
Ready to talk? #
Get a Free Portfolio ReviewNo obligation. No sales pitch. If direct plans are better for your situation, I will tell you in the first conversation.