Commission and conflict of interest

Investments facilitated through Nico Wealth are made under the Regular Plan of a mutual fund scheme. Under a Regular Plan, the Asset Management Company (AMC) pays us a trail commission for as long as you stay invested. You do not pay us a separate fee. This is disclosed under Code 4(f) of the AMFI Code of Conduct.

How we are paid

We are paid only a trail commission, calculated on the value of your investments and paid periodically by the AMC. Under Para 5.1.2 of the AMFI Master Circular, upfront commission in cash or kind is not permitted. The trail commission is already built into the Regular Plan’s expense ratio, which is deducted by the scheme, not charged to you separately by us.

A Direct Plan of the same scheme carries no distributor and therefore no distributor commission. We explain that difference, neutrally, on how we work. As a distributor, we cannot transact in Direct Plans on your behalf.

The conflict this creates, stated plainly

Because commission varies between schemes and scheme categories, a distributor can face a conflict between what pays more and what suits you. We manage it as follows:

We do not accept or pass back any rebate on commission, in cash or in kind (Code 1(d)).
We disclose all commissions we would receive across competing schemes at the point of any recommendation (Code 4(e)).
We do not sell on the basis of assured or indicative outcomes, and we do not churn your investments to earn fresh commission (Code 4(g), 1(e)).

Scheme-wise commission rates

Code 4(f) entitles you to see the commission payable across the different competing schemes before you invest. The scheme-wise commission structure we receive is disclosed to you at the time of a transaction and is available on request.

The commission on each scheme is set by the respective Asset Management Company and published in that AMC’s commission disclosure on its own website. You can also find the AMC commission disclosures on the AMFI website. We disclose the commission across the competing schemes to you before you invest and at the time of each transaction, and it is available on request at any time. We do not publish figures we cannot stand behind.

Before you invest

Please read the scheme documents: SID, SAI and KIM.

Mutual fund investments are subject to market risks. Please read all scheme related documents carefully before investing.