https://v2.webnotes.in/tags/churning/Recent content in Churning on WebNotesHugoen-INTue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/mutual-fund-upfront-commission-banned/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/mutual-fund-upfront-commission-banned/<p>An <strong>upfront commission</strong> in mutual funds was a one-time payment made by an AMC to a distributor at the time of initial investment as a percentage of the amount invested by the investor through that distributor. Unlike <a href="https://v2.webnotes.in/mutual-fund-trail-commission/">trail commission</a> , which is paid on an ongoing basis as long as assets remain invested, upfront commission was paid immediately upon subscription irrespective of how long the investor held the investment.</p> <p>SEBI banned upfront commissions on mutual fund investments through Circular SEBI/HO/IMD/DF2/CIR/P/2018/137 (dated 22 October 2018), with effect from 1 October 2018, transitioning the distribution industry to a trail-only commission model.</p>