Do I need to pay any fees to the distributor or platform for investing?
Do I need to pay any fees to the distributor or platform for investing?
In most cases, you don’t need to pay any extra fees directly to the distributor or investment platform. However, here’s what you should know:
Regular vs Direct Plans:
If you invest in a regular plan, the distributor/platform earns a commission from the mutual fund company.
This commission is included in the fund’s expense ratio — you don’t pay it separately, but it slightly reduces your returns.
If you invest in a direct plan, there's no commission, and the expense ratio is lower — so you get slightly higher returns.
No entry load:
SEBI has banned entry loads, so mutual funds can’t charge you a fee to start investing.
Exit load may apply:
Some funds charge a small fee for early withdrawal, usually if you redeem within a specific period (like 1 year). This goes to the fund, not the platform.
Always check if the platform offers regular or direct plans and whether there are any additional service fees for features like advisory, reports, or premium tools.
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