Our fees & how we get paid
We believe you deserve to know exactly what you're paying and how your advisor earns. Here's the full, honest picture.
How ArthmArg earns
ArthmArg is an AMFI-registered Mutual Fund Distributor (MFD). We are compensated through trail commission paid by Asset Management Companies (AMCs) — not by you directly. No advisory fees, no account-opening fees, no exit loads charged by us.
What is trail commission?
When you invest through a distributor like ArthmArg (called a "regular plan"), the AMC pays us a small percentage of your AUM each year — typically 0.5%–1.0% p.a. depending on the fund category. This is already included in the regular plan's expense ratio and does NOT come out of your pocket separately. The AMC pays it from the expense ratio they charge all investors.
Regular plan vs direct plan — what's the difference?
- Slightly higher expense ratio
- AMC pays trail commission to us
- You get personalised advice, portfolio review, goal tracking and support
- We handle paperwork, KYC, nominations, switches
- Ideal if you want guidance
- Lower expense ratio (~0.5–1.0% cheaper)
- No commission to any distributor
- You research, track, rebalance — all yourself
- No advisor relationship
- Ideal if you have time and expertise
Typical commission by fund category
| Category | Trail commission (approx. p.a.) |
|---|---|
| Equity — large cap | 0.75%–1.00% |
| Equity — flexi cap / multi cap | 0.80%–1.10% |
| Equity — small/mid cap | 0.90%–1.20% |
| Debt — liquid / overnight | 0.05%–0.15% |
| Debt — short/medium/long duration | 0.25%–0.70% |
| Hybrid — balanced advantage / aggressive | 0.70%–1.00% |
| Index funds / ETFs | 0.05%–0.30% |
Commission rates vary by AMC and scheme. AMFI and SEBI have set caps on total expense ratios (TER). All commission is disclosed to the regulator.
SEBI / AMFI mandatory disclosure
ArthmArg is registered with AMFI as a Mutual Fund Distributor. As a distributor we earn trail commission from AMCs. We do not charge you a direct fee for mutual fund distribution. This disclosure is made in accordance with SEBI circular SEBI/HO/IMD/DF2/CIR/P/2018/20 and AMFI guidelines. Investments made through us are in "regular" plans, which have a higher expense ratio than "direct" plans by approximately the commission amount shown in the table above.
What you get in return
- Goal-based financial plan tailored to your income, liabilities and risk tolerance
- Personalised fund selection — not a generic model portfolio
- Annual portfolio review with rebalancing recommendations
- Tax-efficiency review (LTCG/STCG harvesting, old vs new regime)
- WhatsApp & email support — no chatbot, real advisor
- KYC, nomination, FATCA and other paperwork handled
- Completely free for you — the AMC covers our commission
Is it worth using a distributor?
Research (SPIVA India) shows that most retail investors who go direct underperform because they over-trade, panic-exit during market falls, and chase recent performers. The value of an advisor is behavioural — keeping you invested during volatility and on track toward your goals. The 0.5–1% difference in expense ratio is the cost of that discipline. For most investors, the net outcome with a good advisor beats a self-managed direct portfolio.
That said, if you're a confident, time-rich investor who enjoys researching funds — go direct. We'll be honest about it.
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