Mutual Fund Agents are compensated through

Options

A. Salaries
B. Commissions
C. An annual fee
D. Not in cash but in kind

Answer

B

Explanation

Mutual Fund agents are paid through commissions . A mutual funds agents commission comprises three parts: client's commission , upfront commission and trail commission . A customer pays his agents a commission for providing his service which is known as Clients Commission. The Upfront Commission is paid by the assest management company to its agents in the first year and varies from one company to another and is different across the entire range of mutual funds. Assest management companies pay trail commissions to agents in successive years.