It’s a quantum shift. Quantum Asset Management Co. Ltd (Quantum) prided itself as being India’s first and only direct to customer mutual fund. It did not pay any commissions to distributors, even if they went ahead and sold Quantum’s mutual fund schemes.
After more than a decade of sticking to this strategy, the fund house will now start paying commissions to distributors. It will launch a ‘regular’ plan in all its schemes. Every mutual fund scheme has a ‘regular’ plan and a ‘direct’ plan. Distributors earn a commission by selling regular plans. In direct plans, investors don’t pay distributor commissions.
