Transparency

Commission Disclosure

In line with AMFI’s Code of Conduct for Mutual Fund Distributors, we disclose how we are compensated for the mutual fund schemes we help you invest in.

We do not charge you a separate advisory or distribution fee.We are compensated through commission paid by Asset Management Companies, as described below.

How we are compensated

Prenam Asset Distribution LLP is an AMFI-registered Mutual Fund Distributor (ARN-371383). For every investment made through us in a Regular Plan of a mutual fund scheme, the concerned AMC pays us a commission — commonly referred to as trail commission.

We do not receive any payment directly from you for facilitating your investment. Our compensation comes from the AMC.

What is trail commission?

Trail commission is an ongoing, recurring payment made by the AMC to the distributor for as long as an investor’s money remains invested in a scheme through that distributor.

It is typically calculated as a small percentage of the assets under management attributable to the investments we have facilitated, and is paid periodically — usually monthly or quarterly — for the duration of the investment.

Regular Plan vs. Direct Plan

Every mutual fund scheme is available in two variants:

  • Regular Plan — includes distributor commission within the scheme’s Total Expense Ratio (TER). This is the plan we help you invest in.
  • Direct Plan — does not include distributor commission, and therefore carries a lower expense ratio. Direct Plans can only be purchased directly through the AMC, without a distributor.

Investors who prefer not to pay for distribution services, and who are comfortable researching, selecting and servicing their own investments, may choose to invest directly through Direct Plans. We will say so plainly if we think that is the better fit for you.

Does commission affect my returns?

Commission paid to us is already factored into a Regular Plan’s Total Expense Ratio, which is deducted from the scheme’s NAV before it is published. It does not result in any additional or hidden charge to you beyond what is disclosed in the scheme’s TER.

The TER is publicly available in the Scheme Information Document (SID) and on the AMC’s website. A Regular Plan will, all else being equal, show a slightly lower NAV growth than the corresponding Direct Plan because of this difference. That difference is the cost of distribution, and you are entitled to weigh it.

Commission varies by scheme and AMC

Commission rates are set by individual AMCs and vary depending on the scheme category (equity, debt, hybrid and so on), the AMC’s internal policies, and prevailing SEBI and AMFI regulations on maximum permissible expense ratios.

We do not receive a flat or fixed rate across all schemes, and commission structures may change from time to time based on AMC and regulatory decisions.

Our commitment on conflict of interest

We recognise that commission-based compensation could create an incentive to recommend schemes that pay higher commission rather than schemes best suited to an investor’s goals. In line with AMFI’s Code of Conduct, we commit to:

  • Recommending schemes based on suitability to your goals, risk profile and investment horizon — not on commission rates
  • Disclosing commission structures to you on request
  • Never recommending switches or churn primarily to generate additional commission
Want the specifics for a particular scheme?For a scheme-specific commission breakup, or any question about how we are compensated, write to invest@prenam.com or call +91 70090 03671. We will give you the actual numbers.

Last updated: October 2026. Prenam Asset Distribution LLP — AMFI-registered Mutual Fund Distributor (ARN-371383) · LLPIN ADB-7768.