Mutual Fund Distributor vs SEBI-Registered Investment Adviser: How Each Gets Paid
SEBI lets a registered investment adviser charge a family either a fixed fee of up to ₹1.51 lakh a year or up to 2.5% of the assets it advises on. A mutual fund distributor cannot send you a bill for advice at all, yet is paid every year out of the fund you hold. Both are in the business of helping you invest, and they are paid in completely different ways, which changes the advice you receive. That difference is the heart of the mutual fund distributor vs investment adviser question. It is not about who is honest and who is not. Both operate under SEBI's framework, and plenty of investors are well served by each. It is about incentives: whose interests are quietly built into how the person across the table earns a living. This guide explains both models in plain terms, shows what each costs in rupees, and lays out the conflict of interest that sits inside each one, so you can ask better questions before you hand over your money. Who Is a Mutual Fund Distributor and Who I...