Ch.4 · AMFI Code of Conduct · medium
What is 'upfront commission' in mutual fund distribution and what is its current regulatory status?
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EXPLANATION
Upfront commission was a one-time payment made by AMCs to distributors at the time of investment. SEBI banned all forms of upfront commissions in September 2018 to eliminate mis-selling incentives. All distributor compensation is now trail commission, paid monthly from the scheme's ongoing TER.
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