A mutual fund distributor earns a commission for signing up an investor to a mutual fund scheme. The Asset Management Company (AMC) pays the commission to the distributor. The commissions vary based on the type of mutual fund and the fund house. The distributor also provides investors with all the necessary information related to the mutual fund and the fund house. Furthermore, the distributor also assists investors in performing transactions. Transactions such as investing, redemptions, switching between funds, etc. Also, distributors perform periodic reviews of their investor’s portfolios and suggest necessary changes.