A SIP agent earns trail commission, typically a blended 0.50 to 0.70 percent per annum on the accumulated SIP value, paid monthly by the AMC. The SIP distributor commission on a single ₹10,000 monthly SIP starts near ₹760 in year one and grows past ₹5,000 a year by year five as the balance compounds. Total earnings depend on the size, age, fund mix, and persistency of the SIP book.

SIP commission is paid monthly, not yearly. The trail commission is calculated as an annual percentage of the accumulated SIP value but disbursed by the AMC every month in arrears, based on the daily average assets for that period. This monthly payout is what makes SIP distribution a recurring income stream that continues for as long as the client stays invested in the Regular plan scheme.

SIP agents earn on the total accumulated value of the investment, not on each instalment. The trail commission is a percentage of the growing balance, so it rises every month as instalments add up and the portfolio appreciates. An agent does not receive a separate fee for each ₹10,000 deposit; instead, they earn an annual percentage on the full balance, paid monthly, which compounds over the life of the SIP.

Sectoral and thematic equity funds typically pay the highest SIP trail commission, in the range of 0.75 to 1.50 percent per annum, followed by diversified equity at 0.50 to 1.00 percent. Debt and index funds pay considerably less. However, the fund must suit the client’s risk profile and goals; recommending a high-commission scheme that does not fit the investor is a SEBI compliance risk and damages long-term retention.

Yes, SIP commission increases over time, and this is its defining feature. Because the trail is paid on the accumulated SIP value, the commission grows every month as instalments add up and the investment appreciates. The annual trail on a single SIP can more than triple between year one and year five without any new effort, provided the client keeps the SIP running. Step-ups and continued persistency increase it further.