What is trail commission in a Mutual Fund ?

mutual funds pay 2 types of commissions to agents.
first is upfront, which is paid at the time of inestment. second is trail, which is paid normally from the second year, if the same investment remains in susequent years. trail commission is just a fraction of upfront commission. moreover rate of commission depends on type of funds e.g. equity, debt, gilt, hybrid etc.

Commission is paid to the broker when you cash out of the mutual fund.

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