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.

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    Is that a yearly commission or an annual expense or fee that the mutual fund charges to cover its expenses in handling your money? In the US, the annual fee is deducted from the assets of the mutual fund and thus reduces the price of the shares: there is no explicit deduction from the asset value, e.g. you own 100 shares worth 10 each one day, and the next day you own 100 shares worth 9.90. In actuality, in the US, 1/365th of 1% would be deducted on a daily basis and there is no abrupt change in share price due to the expenses being charged from one day to the next as stated above. Mar 24 '18 at 19:42

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.

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