I had purchased HDFC prudence fund (Balanced Fund - 65% equity) via a broker (my bank) on 29th June 2016. I would like to know when would the next yearly commission to be paid to the mutual fund agent (my bank) of 1% be deducted from my asset value. Also if anyone could enlighten me on the upfront commission that the broker was paid from my asset at the time of purchasing the mutual fund units. In India, MF distributors get a commission which is deducted from the investors capital. The commission is both on an upfront and yearly basis, together.
The commission at entry is stopped from 2012. The distributor directly gets 1% at sale.
There is no direct linkage between what the broker/distributor company gets to what they pay the individual agent.