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What we earn, and who pays it
AMFI's code of conduct requires distributors to disclose the commission received across competing schemes. This page sets out how we are paid, in plain terms.
The short version. You pay us nothing directly. We distribute regular plans of mutual fund schemes, and the Asset Management Company pays us a trail commission out of the scheme's expense ratio. Regular plans therefore carry a higher expense ratio than direct plans of the same scheme. That difference is the cost of the service we provide, and you should weigh it deliberately.
Regular plans versus direct plans
Every open-ended mutual fund scheme in India offers two plans with identical portfolios and identical fund managers:
| Direct plan | Regular plan | |
|---|---|---|
| How you invest | Directly with the AMC or through a SEBI Registered Investment Adviser | Through an AMFI registered distributor such as Credible Investments |
| Expense ratio | Lower | Higher — includes distributor commission |
| NAV over time | Slightly higher, all else equal | Slightly lower, all else equal |
| Who services you | You, or your fee-charging adviser | Your distributor, at no direct charge to you |
| Portfolio & fund manager | Identical | Identical |
The gap between the two expense ratios varies by scheme and category but is commonly in the region of 0.50% to 1.00% a year for equity schemes and lower for debt schemes. Over long horizons this difference compounds and is material. We believe the servicing, hand-holding and behavioural support we provide is worth it for many investors — but that is a judgement you are entitled to make for yourself, and we would rather you made it with the numbers in front of you.
How we are paid
- Trail commission only. Following SEBI's move to an all-trail model, we receive an ongoing trail commission calculated on the daily net assets you hold, paid monthly by the AMC. We do not receive upfront commission.
- Paid by the AMC, not by you. The commission comes out of the scheme's total expense ratio. There is no separate charge, deduction or invoice to you.
- It stops when you exit. Trail commission is payable only for as long as you stay invested, which aligns us with your staying invested rather than with your transacting.
- No advisory fee. We are distributors, not SEBI Registered Investment Advisers. We do not charge you a planning, advisory or portfolio fee of any kind.
Indicative trail commission ranges
Rates are set by each AMC, differ by scheme and category, and are revised from time to time. The following are indicative annual ranges only and should not be read as the rate applicable to any particular scheme:
| Scheme category | Indicative annual trail |
|---|---|
| Equity — flexi cap, large cap, mid & small cap, sectoral | 0.50% – 1.25% |
| Hybrid — aggressive, balanced advantage, conservative | 0.40% – 1.10% |
| Index funds and ETFs | 0.05% – 0.35% |
| Debt — corporate bond, short duration, gilt | 0.10% – 0.65% |
| Liquid, overnight and ultra-short duration | 0.02% – 0.20% |
| ELSS (tax-saving) | 0.50% – 1.20% |
You are entitled to ask us for the specific trail rate applicable to any scheme we suggest, before you invest. Please do ask — we will put it in writing.
What this means for our recommendations
Commission rates differ between categories, which creates an obvious conflict of interest: a distributor earns more on an equity scheme than on a liquid fund. We manage that conflict in three ways, and you are entitled to hold us to them.
- We recommend a scheme category based on the goal's time horizon and your risk tolerance, never on the trail rate.
- We do not churn portfolios. Moving you between schemes generates fresh commission on the new scheme and is a well-known distributor abuse; we switch only when the goal, the mandate or the asset allocation calls for it.
- If you would prefer to invest in direct plans instead, we will tell you so plainly and point you to the AMC. We would rather lose the folio than mislead you about the trade-off.
Other disclosures
- We may receive non-cash benefits from AMCs in the ordinary course, such as training programmes, investor awareness support and marketing material, in line with AMFI guidelines.
- Each transaction we process carries the EUIN of the individual who handled it, so the transaction is traceable to a named person.
- You may choose to invest through us without an EUIN by opting for an execution-only transaction, in which case the AMFI declaration on the form applies.
- We do not accept cash. All investments are paid directly to the AMC's collection account by cheque, NEFT, UPI or NACH mandate — never to any personal or business account of ours.
Statutory note: Mutual Fund investments are subject to market risks. Read all scheme related documents carefully before investing. The information on this page is provided in the interest of transparency and in line with AMFI's code of conduct for distributors. Actual commission rates are determined solely by the respective Asset Management Companies and are subject to change without notice to us.
If anything on this page is unclear, please email info@credibleinvestments.in or call +91 98113 12001 and we will walk you through it.