Schedule Consultation
1. Purpose
This policy sets out how A unit of Satwik and Ritwik Ventures Pvt. Ltd. (ARN-175193), operating as Generational Capital, discloses the commission and other monetary benefits it receives for distributing mutual fund schemes, in line with SEBI and AMFI guidelines on distributor transparency.
2. Our role
We are registered with the Association of Mutual Funds in India (AMFI) as a Mutual Fund Distributor under ARN-175193. In this capacity, we distribute mutual fund schemes of various Asset Management Companies (AMCs) and are not an investment adviser registered with SEBI under the SEBI (Investment Advisers) Regulations, 2013, unless separately disclosed to you in writing for a specific engagement.
3. How we are compensated
For every mutual fund transaction routed through us, the AMC pays us commission out of the scheme's expense ratio. We do not charge investors any separate distribution fee on top of this. The commission we may receive includes:
Upfront commission — a one-time payment linked to the amount invested at the time of purchase or switch-in, where permitted by regulation.
Trail commission — a recurring payment calculated as a percentage of the assets under management (AUM) held in the scheme, paid periodically (typically monthly or quarterly) for as long as the investment remains invested through us.
Other benefits — occasional non-monetary benefits such as sponsored training, conferences, or business-development support offered by AMCs, disclosed here for transparency even though these do not affect the investor's cost.
Commission rates vary by AMC, scheme category (equity, debt, hybrid, etc.), and the specific plan (regular vs. direct). Exact, scheme-wise commission rates are set by each AMC and can change from time to time; they are not fixed by us.
4. No additional cost to you
Commission is paid by the AMC from the scheme's expense ratio and is already factored into the scheme's Net Asset Value (NAV) under the regular plan. You do not pay us any commission directly, and choosing to invest through us does not increase your cost of investment beyond what the regular plan already reflects.
5. Regular plan vs. direct plan
Every open-ended mutual fund scheme is available in two variants:
Regular plan — includes distributor commission in its expense ratio; purchased through a distributor like us, who provides advisory support, service, and assistance.
Direct plan — has a lower expense ratio because no distributor commission is built in; purchased directly from the AMC without distributor involvement.
Direct plans generally deliver marginally higher returns than regular plans of the same scheme, over time, because of the lower expense ratio. You have the right to invest in direct plans on your own, and we encourage you to consider this option if you do not require distribution services.
6. Potential conflict of interest
Because commission rates differ across AMCs and schemes, there is an inherent possibility that recommendations could be influenced by the level of commission offered on a particular product. We manage this conflict by:
Recommending schemes based on your stated goals, risk profile, and investment horizon, not on commission alone.
Not entering into any arrangement where commission is the sole or primary basis for a recommendation.
Making this policy available to any client or prospective client on request, and reviewing it periodically.
7. Your right to information
You may ask us, at any time, for:
The commission structure applicable to any scheme we recommend or that you hold through us.
Confirmation of whether a scheme is being offered to you as a regular or direct plan.
A comparison of the regular and direct plan expense ratios for any scheme you are considering.
We will provide this information in writing within a reasonable time of your request.
8. Regulatory basis
This disclosure is made in accordance with applicable SEBI circulars and AMFI guidelines requiring mutual fund distributors to disclose commission structures to investors and to avoid mis-selling arising from commission-linked incentives.
9. Review
This policy is reviewed periodically and whenever there is a material regulatory change. The version in effect on our website supersedes any earlier version.
