Ch.6 · ARN and EUIN Rules · easy
What is trail commission in mutual fund distribution?
0% of students got this wrong
EXPLANATION
Trail commission is an ongoing commission paid by the AMC to the distributor every month, calculated as a percentage (typically 0.5%–1% per annum) of the investor's AUM. It is paid as long as the investor remains invested. Trail aligns distributor incentives with investor retention rather than just initial sale.
Practising Chapter 6 one question at a time?
Try the full chapter — 100 questions, tracked score, weak area breakdown.