Why this page exists
AMFI requires mutual fund distributors to disclose the commission they earn. We would publish it in any case: an investor who knows how their distributor is paid is in a better position to judge the advice they receive from anyone, including us.
Who pays us
VK Finserve is paid by the Asset Management Companies whose schemes you invest in. We are not paid by you. There is no advisory fee, no account opening fee, no transaction charge and no annual fee payable to us for mutual fund distribution.
The commission is paid out of the scheme's expense ratio. This is why you hold regular plans: a regular plan has a higher expense ratio than the direct plan of the same scheme, and the difference is broadly what funds distributor commission and service.
Forms of commission
- Trail commission — the main and, for most schemes, the only form. It is a percentage of the daily average value of the investments you hold, paid for as long as you remain invested. If your holding falls in value, so does our commission.
- Transaction charge — AMFI permits a one-time charge on investments of ₹10,000 or more, deducted from the investment amount. VK Finserve has opted out of this charge. We do not levy it.
Indicative range
Trail commission rates are set by each AMC for each scheme and change from time to time. Broad ranges currently prevailing in the industry are set out below for guidance only; the applicable rate for any scheme is disclosed by the AMC and is available on request.
| Scheme category | Indicative annual trail range |
|---|---|
| Equity-oriented schemes | 0.50% – 1.25% p.a. |
| Hybrid schemes | 0.40% – 1.10% p.a. |
| Debt schemes (other than liquid) | 0.10% – 0.75% p.a. |
| Liquid and overnight schemes | 0.01% – 0.15% p.a. |
| Index funds and ETFs | 0.05% – 0.40% p.a. |
These are indicative industry ranges, not a rate card, and they do not represent a charge to you over and above the scheme's expense ratio. The exact commission earned on your investments can be provided on request at any time.
The conflict, stated plainly
Because commission varies by category, a distributor earns more from an equity scheme than from a liquid one. You should know that, and you should feel free to question any suggestion that happens to align with it. Our position is straightforward: the category should follow your horizon and your risk comfort, not our commission. If money is needed next year, it belongs somewhere safe, and we will say so.
We do not churn folios to generate fresh transactions, and we do not receive any payment for recommending one AMC over another beyond the standard trail on what you actually hold.
Insurance and broking
Insurance products are solicited through our licensed insurance partners, who are paid commission by the insurer in accordance with IRDAI norms. Broking services are provided by Aditya Birla Money Limited, where Veerendra Kumar A D acts as an Authorised Person; remuneration for that role is a share of brokerage generated, governed by the agreement between Veerendra Kumar A D and Aditya Birla Money Limited. Brokerage payable by you is set out in your account opening documents with the broker.
Ask us any time
Write to veerukumar78@gmail.com for the commission actually earned on your folios in any period. We will send it.
