Quantum Mutual Fund (QMF) will start offering regular plans from April 1. This means, the direct-to-investor fund house will start paying commissions to advisers.
“We do recognize that many other investors may need the assistance and the help of a distributor to plan their investments. It is for their benefit that we are launching a regular plan by which we can pay that distributor a fee,” states QMF.
While the fund house has been around for over a decade, it has built assets worth Rs. 858 crore till December 2016 as it followed direct-to-investor model. "We have sacrificed our growth and remained steadfast to our principle of transparency, because we adhere to the simple belief that an investor should know what he is being charged for a service," said Quantum.
Among the 300 advisers empaneled with Quantum, PersonalFN, FundsIndia, Fundsupermart and Prudent are some of QMF's largest distributors.
It is not that the fund house never empaneled advisers. The 21 advisers who have been selling Quantum funds never got commissions. Now, they will start getting 0.15% and 0.20% trail commission in the first year and second year respectively, which goes up to 0.25% in the third year. From fourth year, the trail will come down to 0.15%. It won’t offer any upfront commission. Advisers won’t get commissions if they switch investments in and out of Quantum funds. Any commission payouts in regular plans which exceed 0.15% will be borne by the AMC.
The fund house has clarified that existing investments, which have come through distributors, will remain in direct plans at the existing expense ratio.
Commissions are excluding service tax and any other statutory levies.
