Multiple choice

Which of the following is not included in transaction costs?

  1. brokerage/commissions

  2. stamp duty on transfers

  3. agent commissions

  4. None of the above

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Agent commissions (like distributor commissions) are paid for selling fund units to investors, not for executing securities trades. Brokerage, stamp duty, and other trade-related costs ARE transaction costs because they occur when buying/selling securities in the portfolio. Agent commissions are distribution expenses, not transaction costs.