? MFDs earn a small percentage as trail commission from the mutual fund company — there is no direct cost to the investor. This helps ensure continued service, guidance and relationship management.
? No hidden fees. MFDs earn trail commission transparently through the expense ratio of mutual fund schemes, which is regulated by SEBI and clearly disclosed.
? MFDs offer independent, need based recommendation without pushing bank-specific products. Their incentive is long-term client retention, not sales targets.
No, mutual fund investments are subject to market risk. Past performance does not gurantee future returns. Investor must assess their risk profile and consult a professional before investing.