Take managed funds for example. Hundreds of different funds compete in the market. Many of them are well run, and at least several funds will probably meet your needs. To distinguish themselves from their competitors, funds offer different features and different benefits. Many funds also compete by offering advisers different amounts of commission and different mixtures of entry fees and trailing commissions.
Commissions reward the adviser, life agent or broker.
Ultimately your money pays for these commissions. How commissions can influence the advice you get Many financial advisers earn most of their income from commissions. Good advisers will always put your interests first, even if it means recommending a product with a lower commission. Bad advisers put their own interests ahead of yours. What you can do You can get sound advice from many licensed advisers who earn commissions.