SEBI's New Incentive Model to Boost Mutual Fund Reach

SEBI has introduced an incentive structure for mutual fund distributors to promote investment from new individual investors in B-30 cities and women investors across all cities. Starting February 2026, distributors will earn additional commissions, with guidelines set to be released by AMFI soon.

On Thursday, the Securities and Exchange Board of India (SEBI) announced a progressive new incentive structure targeting mutual fund distributors.

The scheme, effective from February 1, 2026, will reward distributors with additional commissions for engaging new investors, specifically from B-30 cities, and new women investors globally.

This aligns with SEBI's efforts to expand outreach and enhance investment awareness. Distributors will earn 1% of the first lump-sum investment or first-year SIP amount, capped at Rs 2,000, for investments maintained for at least a year.