The mutual fund industry lobby has once again asked its members to cap their upfront commission payouts at 1% with immediate effect or face stringent checks by the capital market regulator should the industry fail to do so. This is the third such communication in nearly a month from the Association of Mutual Funds in India (Amfi) to its members.
The upfront commission is the fee a customer pays to a distributor for investing in a mutual fund scheme. Currently, many AMCs charge more than 2% as upfront commission payouts.
