Fund houses are doling out higher trail commissions to big distributors and wealth management firms to boost NFO mobilisation. Asset managers have collected nearly Rs 20,000 crore of inflows via the NFO route in the past six months.
Typically, distributors get around 70-75 basis points (100 bps equals to 1 per cent) of trail commission, but in the past few months they are getting slightly higher trail commissions at around 100-110 bps, say industry participants. Industry participants say this is prompting large distributors to aggressively market new offers launched by the Rs ...
