Earnings & Commissions
Commission Overview
| Product | Commission | Type |
|---|---|---|
| Equity MF | 0.5% to 1.3% | Trail (monthly recurring) |
| Debt MF | 0.1% to 0.4% | Trail (monthly recurring) |
| PMS | 1% to 1.3% | Trail (monthly recurring) |
| AIF | 1% to 1.3% | Trail (monthly recurring) |
| Health Insurance (Fresh) | 25% to 35% | Upfront (one-time) |
| Health Insurance (Port/Renewal) | 12% to 20% | Upfront |
| Life Insurance — Term | 35% to 54% | Upfront (one-time) |
| Life Insurance — Savings | 35% to 50% | Upfront |
| Life Insurance — ULIP | 2% to 10% | Upfront |
| Fixed Deposit | 1% to 1.7% | Upfront (one-time) |
| Bonds | 0.6% to 1.5% | Upfront (one-time) |
Trail Commission — How It Works
Trail commission is a lifelong income stream — you earn monthly as long as the AUM remains invested.
Double Engine Growth
- Fresh investments — New SIPs and lumpsums add to AUM
- Market growth — Nifty has delivered ~12-15% CAGR, growing AUM even without new investments
Legacy Income
Trail commission can be inherited — legal heirs can continue receiving trail income.
Calculation
- Calculated daily as a percentage of AUM per scheme
- Aggregated and paid monthly
SIP Trail Growth Example (₹5K SIP per client, 12% growth, 0.7% trail)
| Year | AUM | Annual Trail |
|---|---|---|
| 1 | ₹64K | ₹448 |
| 5 | ₹4.12L | ₹2,887 |
| 10 | ₹11.62L | ₹8,132 |
| 15 | ₹25.23L | ₹17,660 |
| 20 | ₹49.96L | ₹34,970 |
| 25 | ₹94.88L | ₹66,417 |
This is per client. With 50-100 active SIP clients, the numbers compound significantly.
Cross-Sell Income
Partners who diversify across products earn significantly more. Average partner income:
| Product | Monthly Income |
|---|---|
| Mutual Funds | ₹38,000 |
| Insurance | ₹23,000 |
| Other Products | ₹15,000 |
| Total | ₹76,000 |
Partners who cross-sell earned 2x more than MF-only partners.
Insurance vs MFD Income Comparison
For a partner acquiring 10 clients/year (₹50K insurance premium vs ₹5K MF SIP):
| Year | Insurance Income | MFD Trail Income | Winner |
|---|---|---|---|
| 1 | ₹1.25L | ₹4.5K | Insurance |
| 5 | ₹2.25L | ₹80K | Insurance |
| 10 | ₹3.5L | ₹3.72L | MFD overtakes |
| 15 (stopped working) | ₹2L ↓ | ₹8L+ ↑ | MFD 4x ahead |
| 20 (stopped working) | ₹1L ↓↓ | ₹15L+ ↑↑ | MFD 15x ahead |
Key insight: Insurance = trade time for money. MFD = build a compounding asset.
Payout Schedule
- Two cycles: 15th and 30th of every month
- Credited to registered bank account (must be in partner’s name)
- Bank details updatable via Partner App
GST on Commissions
GST Registered Partners
- MF brokerage is inclusive of GST
- Example: ₹100 brokerage = ₹84.70 revenue + ₹15.30 GST
- Partner must deposit GST to government
- Non-compliance for 3-4 months → payout hold
Non-GST Registered Partners
- Full brokerage credited as revenue
- No GST obligation
- GST registration is not mandatory
Key Objection Handles
“Share brokerage with Wealthy?” → Don’t focus on rates — focus on absolute income. Wealthy partners grow AUM 59% vs industry 23%. Even a slightly lower rate × 3x growth = much higher income. Add cross-sell on top.
“Will brokerage rates stay the same?” → May decrease over time industry-wide. BUT: Today 1% on ₹10Cr = ₹10L. Future 0.8% on ₹50Cr = ₹40L. Focus on building AUM.
“How does Wealthy make money?” → Distribution fees from AMCs/insurance companies. We retain a small portion and pass the larger portion to partners. We make money only when you make money.
“Do clients pay charges?” → No charges to Wealthy or partner. Only standard TER charged by AMC (included in NAV).