How to handle mutual fund trail commission specifically
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MF trail commission is the perpetuity-like income stream for ARN holders. The trail-only model rewards long-term retention; loses if investor switches to direct.
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Step-by-step procedure
See the procedure infobox above for the six steps.
Category-wise indicative trail rates
Category
Trail per annum
Equity (large-cap, flexi, ELSS)
0.50-1.00%
Hybrid
0.40-0.80%
Debt (short, corporate bond)
0.20-0.60%
Liquid
0.05-0.20%
FoF / international
0.30-0.70%
Actual rates negotiated per AMC’s distributor agreement.
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