Cost of Investing & Regular vs Direct Plans
We believe investors should clearly understand how Money Compound is paid, what costs are embedded in their mutual fund investments, and the difference between Regular and Direct plans of the same scheme. This page lays it all out.
1. How Money Compound earns
Money Compound is an AMFI-registered Mutual Fund Distributor. We do not charge you a separate advisory fee. When you invest in a mutual fund scheme through us, we receive a trail commission from the Asset Management Company (AMC) for as long as your money remains invested. This commission is built into the Total Expense Ratio (TER) of the Regular plan and is not deducted separately from your folio.
2. Regular plan vs Direct plan
| Attribute | Regular Plan | Direct Plan |
|---|---|---|
| Distributor commission | Embedded in TER (paid to distributor) | None |
| TER (illustrative) | Higher by ~0.5–1.0% p.a. | Lower |
| NAV impact | Slightly lower NAV growth over time | Slightly higher NAV growth over time |
| Servicing | Distributor / MFD handholding | Self-service / RIA-led |
If you would prefer to invest in Direct plans of the same schemes, you may do so via the AMC's website, the BSE StAR MF / NSE NMF II direct portal, or a SEBI-registered Investment Adviser (RIA). We will not earn commission in that case.
3. What you get in return for the trail commission
- Goal-mapping and personalised SIP / lump-sum scheme suggestions.
- KYC, onboarding and ongoing folio servicing.
- Periodic written portfolio reviews; any change to your investment mix is suggested in writing and executed only with your approval.
- Tax-statement support and consolidated reporting.
- NRI-specific support: FEMA, DTAA, FATCA / CRS, repatriation.
- A single point of contact for queries — phone, WhatsApp and email.
4. Other product economics
Insurance: commission is paid by the IRDAI-licensed insurer as per IRDAI norms and is built into the premium. Loans: we may receive a one-time DSA fee from the lender on disbursal; this does not increase your EMI. SIF: distribution commission is governed by the SIF scheme document. PMS / AIF: Money Compound does not distribute or advise on PMS/AIF; for interested HNI clients we provide a referral to a SEBI-registered Portfolio Manager / AIF manager, who is responsible for onboarding, fees and reporting. Unlisted shares: facilitated on a transaction basis only — pricing and any spreads are between the buyer, seller and executing SEBI-registered intermediary.
5. Commission disclosure
On request, we will share an annual statement of commission earned on your folios. Please write to helpdesk@moneycompound.com.
6. No conflict-of-interest products
We do not earn entry-load, upfront commission or in-kind incentives. Our trail commission economics align our interests with yours — we are paid for as long as you stay invested, which is the same outcome any long-term investor wants.