Reduction of trail commission: FIFA, FIAI to meet AMFI..!
Foundation of
Independent Financial Advisors (FIFA) & Financial Intermediaries
Association of India (FIAI), an association of national distributors will meet
AMFI soon on reduction of trail commission.
Mr. Dhruv Mehta,
Chairman, FIFA told Cafemutual “We will request AMFI that the industry should
share the impact of reduced cost equally among fund houses and distributors.”
Many mutual fund
houses have reduced trail commission to the extent of 0.15% to 0.20% (15 to 20
bps) following rationalization of Total Expense Ratio (TER) SEBI.
Earlier, SEBI has
revised the definition of top cities and beyond top cities for additional TER.
It has also reduced expenses charged in lieu of exit to 0.05%. Both these
changes have led to reduction in overall TER and trail commission.
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