Part of the same group
Mutual funds · Transparency
How we are paid, stated plainly.
G2P Wealth is a mutual fund distributor. We are paid commission by fund houses on the regular plans our clients invest in. You should know that before you invest, and you are entitled to ask about it at any time.
Reviewed
In short
- Regular plans involve payment of commission to distributors.
- The commission comes out of the scheme’s expense ratio; it is not billed to you separately.
- A direct plan of the same scheme pays no distributor commission and costs less each year — and comes with no distributor service.
Regular and direct plans
Every scheme has a regular plan and a direct plan holding the same investments. The regular plan’s expense ratio includes the distributor’s commission, so its returns are lower by that difference each year. A direct plan is bought straight from the fund house or through a direct platform.
What a regular plan pays for
Help with KYC and paperwork, an explanation of the options and their risks, and reviews when your circumstances change. Whether that is worth the difference is your decision.
Your right to know
Ask us what we receive on any scheme we discuss with you, and we will tell you.
And for insurance
Beema1 is paid by insurers for policies arranged through it, as IRDAI’s regulations permit. There is no charge to you for an enquiry or a conversation.
What to check
These decide what you actually keep. Read them before the return figure.
Your plan type
Your account statement names the plan: regular or direct.
Expense ratio
Compare the two plans of the same scheme; the gap is mostly the distributor’s commission.
Switching costs
Moving from a regular to a direct plan is a redemption and a fresh purchase, which can bring an exit load and capital gains tax.
Questions people ask
General guidance. The scheme document decides the specifics, and tax rules change.
Is a direct plan always better?
It costs less each year. Whether it is better depends on whether you want help choosing, reviewing and staying invested; a direct plan comes with none.
Can I switch from a regular plan to a direct plan?
Yes, but a switch is a redemption and a fresh purchase, so it can bring an exit load and capital gains tax. Check both first.
How much commission do you receive?
It varies by scheme and fund house and is paid out of the scheme’s expense ratio. Ask us about any scheme we discuss and we will tell you.
Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past performance does not indicate future returns. Regular plans involve payment of commission to distributors.