Ch.6 · ARN and EUIN Rules · medium
What is 'absolute commission' versus 'percentage commission' in mutual fund distribution?
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EXPLANATION
Trail commission in mutual funds is almost always percentage-based — calculated as a percentage of the investor's AUM (e.g., 0.50% per annum). Some distributor arrangements may have fixed rupee payouts for specific services, but the dominant model is percentage-based trail that grows as investor AUM grows.
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