Commission & Conflict Disclosure

How we are paid

I Tag Financials (Green Outdoors Global Private Limited) is an AMFI-registered Mutual Fund Distributor (ARN-319081). When you invest through us, you invest in the regular plan of a mutual fund scheme. The asset management company (AMC) that runs the scheme pays us commission for distributing it and for servicing your investment.

We do not charge investors a separate fee for mutual fund distribution, and we do not bill you for this commission.

Who really bears the cost

Commission is paid by the AMC out of the expenses charged to the scheme. Those expenses are deducted from the scheme's assets and are reflected in its Net Asset Value (NAV). So although you do not write us a cheque, the cost of commission is borne by investors in the regular plan through a higher expense ratio than the direct plan of the same scheme.

See Regular vs Direct Plans for a side-by-side explanation.

Types of commission

• Trail commission. A percentage of the value of your investment, paid to us for as long as you stay invested through us. This is the main form of mutual fund commission.
• Other payments permitted by SEBI and AMFI rules. AMCs may, within those rules, pay distributors in other forms from time to time. Where any such payment applies to a scheme we discuss with you, we will tell you.

We follow the standard commission arrangements that apply to our distribution relationships with AMCs. We may receive distribution commission from the AMC on an investment made through us. That commission can vary by scheme, by plan and by the arrangement that applies. This page does not list rates or amounts.

How commission is disclosed to you

The rules that apply to mutual fund distributors require us to disclose to you all the commissions, whether trail commission or any other form, that we receive or will receive on the different competing schemes from which a scheme is being recommended to you.

• At the time of a recommendation. When we recommend a scheme to you, we disclose the commission that applies to that scheme and to the competing schemes it was chosen from.
• On request, at any time. Detailed commission information is also available to you whenever you ask. Email itagfin@gogpl.in or call +91 75750 24455.

Separately, the consolidated account statement sent to mutual fund investors is meant to show the commission paid to distributors on your investments. You can also ask the AMC.

Conflicts of interest

Being paid by the product provider creates conflicts. You should know what they are.

• We earn more on some schemes and categories than on others, which could influence which scheme is suggested.
• We earn only while you remain invested in a regular plan through us, which could discourage us from pointing out lower-cost alternatives.
• We earn nothing if you invest in a direct plan, and distributors are not permitted to deal in direct plans.
• We can only discuss schemes of the AMCs we are empanelled with, so our information does not cover the whole market.

How we manage them

These are the commitments we make, in line with the AMFI Code of Conduct.

• We tell you plainly, here and before you invest, that we are paid commission.
• We base a scheme suggestion on what you tell us about your goals, time horizon and tolerance for risk, not on the commission rate.
• We disclose the commission on the competing schemes we discuss with you.
• We tell you that direct plans exist and that you are free to choose them.
• We do not suggest switching or redeeming simply to generate commission.
• Any association we have with an AMC beyond being its distributor, such as a group, associate or sponsor relationship, will be disclosed to you before you invest in its schemes.

What we will not do

• Pass back, rebate or share commission with an investor.
• Offer gifts, vouchers or other inducements to attract an investment.
• Indicate or assure a return on any scheme.
• Split applications or encourage unnecessary transactions to earn more.

Your choice

You are free to invest through us in a regular plan, to invest yourself in a direct plan, or to use a SEBI-registered Investment Adviser who charges a fee and recommends direct plans. Each route has a different cost and a different level of support. Choose the one that suits you.