Ch.6 · Distributor Commission Structure · medium
What is the difference between mutual fund distribution via 'advisory mode' and 'execution-only mode' for distributors?
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EXPLANATION
In advisory mode, the distributor provides investment advice and recommendations (EUIN mandatory). In execution-only mode, the investor independently decides which scheme to buy and the distributor only processes the transaction without providing advice (EUIN left blank with investor declaration). The distributor still earns trail in both modes.
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