Ch.6 · Distributor Commission Structure · medium
What is the difference between a distributor and a Registered Investment Adviser (RIA) in India?
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EXPLANATION
The key distinction is compensation model: distributors earn trail commissions from AMCs (conflict of interest — they earn more if investors stay invested in higher-cost schemes), while RIAs charge advisory fees directly from clients (fiduciary model — their interest aligns with client's best outcome). A person cannot be both simultaneously.
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