Did you know every time you buy a mutual fund in India, you pay hidden brokerage that makes your broker rich? Not just rich — seriously rich! Every mutual fund in India comes in two flavours — a regular plan and a direct plan. When you buy a regular plan, you buy it through a bank, broker, agent or distributor — and the mutual fund company pays him back a hidden commission every quarter. How does the broker make commissions when you have not even written a cheque for it? The bitter truth: This commission comes out of your investments.
