B-30 and women investor incentive for mutual fund distributors
Since 1 March 2026, MFDs earn a one-time incentive of 1% of the lumpsum (or of SIP instalments collected in the first year), capped at ₹2,000 per new PAN, for bringing a new individual investor from a B-30 city or a new woman investor from any city. It is paid only after the investor stays invested for one year.
Who qualifies
- A new individual investor, meaning a PAN that is new at the industry level, from a B-30 city.
- Or a new woman investor from any city.
- One path per investor only: B-30 or women, not both.
How much and when
| Item | Rule |
|---|---|
| Amount | 1% of the lumpsum, or of SIP instalments collected over the first year |
| Cap | ₹2,000 per new PAN |
| When paid | Only after the investor has stayed invested for 1 year from first allotment |
| Funded by | AMCs' 2 bps investor education set-aside, over and above trail commission |
| Clawback | Applies |
| Live from | 1 March 2026 (pushed from 1 February 2026) |
Schemes that do not count
- ETFs
- Certain fund of funds
- Overnight funds
- Liquid funds
- Ultra-short duration funds
- Low duration funds
What it replaced
The old B-30 additional TER of up to 30 bps under Reg 52(6A)(b) was deleted on 31 October 2025. The old model paid the AMC extra expense on B-30 flows; the new one pays the distributor directly for a genuinely new investor, after a year. For the wider commission picture, see MFD commission rules 2026.
Frequently asked questions
What is the new B-30 incentive for MFDs?
1% of the first year's investment from a new B-30 or new woman investor, capped at ₹2,000 per new PAN, paid after the investor stays invested for one year.
Can I claim both the B-30 and women incentive for one investor?
No. Each new investor qualifies under one path only.
Do liquid fund investments qualify?
No. ETFs, certain fund of funds, and overnight, liquid, ultra-short and low duration funds are excluded.
When did the new incentive start?
It went live on 1 March 2026, after the start date was pushed from 1 February 2026.
Sources
Also drawn from AMFI and SEBI circulars cited in the text. Rules change often; check the latest circulars before acting.
This guide summarises AMFI and SEBI rules as of 4 October 2026 for information only. It is not legal or regulatory guidance. Rabbit Invest is a software platform for mutual fund distributors and is not an Investment Adviser under SEBI IA Regulations 2013.