Fees & Charges Explainer Agent A compliance-focused AI agent that explains financial fees for mutual fund investments using only official sources from SEBI, AMFI, NPCI, and regulatory bodies. The agent provides structured, cited explanations and performs MCP (Model Context Protocol) actions with mandatory approval gates.

🎯 Project Overview This agent helps users understand complex fee structures in mutual fund investments by:

Asking targeted clarifying questions (no PII collection) Generating precise, bullet-point explanations with official citations Performing approval-gated actions: saving notes, drafting emails, logging audit trails 📋 Table of Contents Scenarios Covered Features MCP Actions & Approval Gates Official Sources Sample Outputs Installation & Usage Architecture Compliance & Constraints 🎪 Scenarios Covered

1. ELSS Lock-in & Exit Load Understanding lock-in periods and exit charges for Equity Linked Savings Scheme investments.

Clarifying Questions:

What type of transaction are you planning? (New investment/Redemption/Switch) What is your investment timeline? (Within 3 years/After 3 years/Not sure) Key Information Provided:

Mandatory 3-year lock-in period per Income Tax Act Exit load structure (0-1% after lock-in) SIP installment-wise lock-in calculation Premature withdrawal restrictions No entry load policy 2. Brokerage & DP Charges Transaction and demat account charges for mutual fund investments.

Clarifying Questions:

Which platform are you using? (Direct Plan/Through Broker/Online Platform) What type of transaction? (Lumpsum/SIP/Redemption/Switch) Key Information Provided:

Direct plan vs Regular plan charges Transaction charges structure (₹150 cap or 2.25%) Demat account AMC (₹300-₹750 annually) DP transaction charges for selling units SIP and switch transaction fees 3. SIP Mandate Fees Setup, processing, and cancellation charges for Systematic Investment Plans.

Clarifying Questions:

What type of SIP mandate? (Physical NACH/E-Mandate/UPI AutoPay) What action are you considering? (Setup/Cancel/Modify) Key Information Provided:

NACH mandate setup charges (₹0-₹100) E-Mandate authentication costs UPI AutoPay fee structure (₹0 for ≤₹15,000) SIP processing and cancellation fees Mandate modification charges ✨ Features Clarifying Questions System 2-3 targeted questions per scenario No PII collection - only transaction types and preferences Conditional logic - questions adapt based on user selection Multiple choice format - easy to answer, reduces ambiguity Structured Output Exactly 6 bullet points per explanation One official source citation per bullet Clickable source links - direct access to official documents "Last checked" date - transparency on information currency Facts-only approach - no recommendations or comparisons User Interface Clean, modern design with gradient backgrounds Progressive disclosure - information shown step-by-step Visual feedback - clear indication of completed actions Responsive layout - works on desktop and mobile 🔐 MCP Actions & Approval Gates All MCP actions require explicit user approval before execution. This ensures compliance and prevents unauthorized data operations.

1. Save to Notes Action: Appends explanation to a notes document/database

Approval Flow:

User clicks "Save to Notes" button Modal appears: "Do you want to save this explanation to your notes?" User must click "Approve" or "Cancel" Only on approval: Data is saved with timestamp Data Saved:

json { "date": "20-Dec-2025", "scenario": "ELSS Lock-in & Exit Load", "bullets": [ { "text": "...", "source": "...", "url": "..." } ], "lastChecked": "20-Dec-2025" } 2. Draft Email Action: Creates email draft to support/advisor alias

Approval Flow:

User clicks "Draft Email" button Modal appears: "Do you want to create an email draft to support@amfi.in?" User must click "Approve" or "Cancel" Only on approval: Email draft is created (NOT auto-sent) Email Format:

To: support@amfi.in Subject: Fee Clarification - [Scenario Name]

Dear Support Team,

I've reviewed the official guidelines regarding [scenario]. Here's my understanding based on official sources:

[6 bullet points with citations]

Please confirm if this understanding is current as of [date].

Best regards 3. Log Audit Trail Action: Records action in audit log for compliance tracking

Approval Flow:

User clicks "Log Audit Trail" button Modal appears: "Do you want to log this action in the audit trail?" User must click "Approve" or "Cancel" Only on approval: Audit entry is created Audit Log Format:

json { "timestamp": "2025-12-20T14:30:00Z", "userId": "anonymous", "action": "viewed_explanation", "scenario": "ELSS Lock-in & Exit Load", "clarifiers": { "investmentType": "New ELSS Investment", "timePeriod": "After 3 years" } } Why Approval Gates? Compliance: Financial services require explicit consent for data operations User Control: Users maintain full control over what gets saved/sent Audit Trail: Clear record of user consent for each action Error Prevention: Reduces accidental actions Transparency: Users know exactly what's happening with their data 📚 Official Sources (12 URLs) ELSS Lock-in & Exit Load SEBI Mutual Fund Regulations 1996 AMFI Guidelines on ELSS Income Tax Act Section 80C SEBI Exit Load Guidelines Brokerage & DP Charges SEBI Mutual Fund Transaction Charges AMFI Transaction Guidelines NSDL DP Charges Structure CDSL DP Charges SIP Mandate Fees NPCI NACH Mandate Charges SEBI SIP Guidelines AMFI SIP Information RBI E-Mandate Framework 📊 Sample Outputs Notes Entry Example markdown

Fee Explanation - ELSS Lock-in & Exit Load

Date: 20-Dec-2025
Last Checked: 20-Dec-2025

User Context:

• Transaction Type: New ELSS Investment
• Timeline: After 3 years

Explanation:

1. ELSS mutual funds have a mandatory 3-year lock-in period as per Section 80C of Income Tax Act, 1961. No redemption or switch is permitted during this period.

   • Source: Income Tax Act Section 80C

2. Exit load (if applicable) ranges from 0% to 1% for redemptions made after the lock-in period, as disclosed in the Scheme Information Document.

   • Source: SEBI Exit Load Guidelines

3. Lock-in period is calculated from the date of allotment of units, not from the date of application.

   • Source: AMFI ELSS Guidelines

4. Premature withdrawal is NOT allowed under any circumstances, including financial emergencies or death (estate must wait for lock-in completion).

   • Source: SEBI Mutual Fund Regulations 1996

5. For SIP investments in ELSS, each installment has a separate 3-year lock-in period calculated from its respective allotment date.

   • Source: AMFI ELSS Guidelines

6. No entry load is charged on ELSS investments. Exit load (if any) is deducted from redemption proceeds after lock-in completion.

   • Source: SEBI Circular on Entry Load

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Disclaimer: This information is for educational purposes only. Please verify current rates with your AMC before making investment decisions. Email Draft Example To: support@amfi.in Cc: Subject: Fee Clarification Request - SIP Mandate Fees

Dear AMFI Support Team,

I hope this email finds you well. I am writing to clarify my understanding of SIP mandate fees based on official regulatory guidelines.

Context:

• Mandate Type: E-Mandate (Net Banking)
• Action: Setting up new SIP

My Understanding (based on official sources):

1. NACH (Physical) mandate registration: ₹0-₹100 one-time setup charge depending on bank. Most public sector banks charge ₹0. Source: NPCI NACH Guidelines (https://www.npci.org.in/what-we-do/nach/product-overview)

2. E-Mandate (Net Banking) setup: Usually ₹0 for most banks. May have ₹20-₹50 authentication charge for certain private banks. Source: RBI E-Mandate Framework (https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12064)

3. UPI AutoPay mandate: ₹0 setup charge. No recurring transaction fees for SIP amounts up to ₹15,000 per transaction. Source: NPCI UPI AutoPay Guidelines (https://www.npci.org.in/what-we-do/nach/product-overview)

4. SIP processing charges: Direct mutual fund SIPs have ₹0 processing fee. Regular plans may charge up to ₹150 on first installment only. Source: SEBI SIP Guidelines (https://www.sebi.gov.in/sebi_data/commondocs/jul-2023/Mutual%20Fund%20FAQs_p.pdf)

5. SIP cancellation/pause: ₹0 charges. Investors can stop, pause, or cancel SIP anytime without penalty via AMC portal or registrar. Source: AMFI SIP Information (https://www.amfiindia.com/investor-corner/knowledge-center/systematic-investment-plan.html)

6. Mandate modification charges: ₹0-₹50 for changing SIP amount, date, or bank account. Digital modifications usually free. Source: NPCI NACH Guidelines (https://www.npci.org.in/what-we-do/nach/product-overview)

Could you please confirm if this understanding is accurate as of 20-Dec-2025? If there have been any recent updates to these fee structures, I would appreciate guidance on where to find the latest information.

Thank you for your assistance.

Best regards, [User Name]

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This email was generated based on information last verified on 20-Dec-2025 Audit Log Entry json { "auditId": "AUD-2025-12-20-001", "timestamp": "2025-12-20T14:35:22.000Z", "userId": "anonymous_user_xyz", "sessionId": "sess_abc123def456", "action": "viewed_fee_explanation", "details": { "scenario": "SIP Mandate Fees", "clarifiers": { "mandateType": "E-Mandate (Net Banking)", "action": "Setting up new SIP" }, "mcpActionsPerformed": { "notesSaved": true, "emailDrafted": true, "auditLogged": true }, "approvalTimestamps": { "notesApproval": "2025-12-20T14:34:05.000Z", "emailApproval": "2025-12-20T14:34:45.000Z", "auditApproval": "2025-12-20T14:35:22.000Z" } }, "ipAddress": "192.168.1.100", "userAgent": "Mozilla/5.0 (Windows NT 10.0; Win64; x64)...", "metadata": { "explanationVersion": "1.0", "lastSourceUpdate": "2025-12-20", "complianceStatus": "approved" } } 🚀 Installation & Usage Prerequisites Node.js 16+ or modern web browser React 18+ Internet connection (for official source links) Quick Start Clone the repository bash git clone https://github.com/yourusername/fees-explainer-agent.git cd fees-explainer-agent Install dependencies bash npm install Run the application bash npm start Open in browser Navigate to http://localhost:3000 Usage Flow Select Scenario: Choose from ELSS, Brokerage, or SIP fees Answer Clarifiers: Respond to 2-3 contextual questions Review Explanation: Get 6 cited bullet points with official sources Perform MCP Actions (optional): Save to Notes (with approval) Draft Email (with approval) Log Audit Trail (with approval) Repeat: Explain another fee scenario if needed 🏗️ Architecture Component Structure FeesExplainerAgent/ ├── State Management │ ├── stage (welcome|clarifiers|explanation) │ ├── selectedScenario │ ├── clarifiers (user answers) │ ├── explanation (generated output) │ └── mcpActions (tracking completed actions) │ ├── Data Layer │ ├── scenarios[] (3 fee types) │ ├── clarifierQuestions{} (by scenario) │ ├── officialSources{} (12 URLs by scenario) │ └── explanations{} (pre-structured outputs) │ └── UI Components ├── Welcome Stage (scenario selection) ├── Clarifiers Stage (questions) ├── Loading Stage (generation) ├── Explanation Stage (results + MCP actions) └── Approval Modal (gate for MCP actions) Workflow Diagram [User] → [Select Scenario] → [Answer Questions] ↓ [Generate Explanation] → [Display 6 Bullets + Sources] ↓ [Optional MCP Actions] → [Approval Gate] → [Execute Action] ↓ [Return to Welcome or Exit] Key Design Decisions Pre-structured Explanations: For compliance and accuracy, explanations are pre-written and validated against official sources rather than generated dynamically. Approval Gates: Every MCP action requires explicit user consent via modal to meet financial services compliance requirements. No PII Collection: Clarifying questions focus on transaction types, not personal information, to minimize privacy concerns. Source-First Approach: Every bullet point must have an official source citation - no unsourced claims allowed. Static Fee Data: Fee structures are updated manually with verification dates rather than scraped dynamically to ensure accuracy. ⚖️ Compliance & Constraints Regulatory Compliance Facts-only: No recommendations, comparisons, or performance predictions Official sources: Only SEBI, AMFI, NPCI, RBI, Income Tax Act Exact quotes: Numbers and terms quoted exactly as published Date stamping: "Last checked" date on every explanation No financial advice: Disclaimer on every output Data Privacy No PII collection: Only transaction type preferences Anonymous users: No login or identification required No data retention: Session-based only (unless user approves save) Explicit consent: Approval gates for all data operations Technical Constraints 6 bullets maximum: Forces conciseness and focus 1 source per bullet: Ensures traceability No AI generation: Pre-validated content only Approval required: No automatic MCP actions Read-only sources: Links to official documents, no scraping Limitations Static content: Requires manual updates when regulations change Limited scenarios: Only 3 fee types covered (can be expanded) No real-time data: Fee information as of last verification date English only: No multi-language support currently No personalization: Generic explanations, not account-specific 🔮 Future Enhancements Planned Features Integration with real MCP servers for Notes/Email/Audit Webhook support for automatic source updates Additional scenarios (NFO charges, switch fees, etc.) Multi-language support (Hindi, regional languages) PDF export of explanations WhatsApp/email sharing Comparison mode (with disclaimers) Historical fee tracking MCP Integration Roadmap Google Drive MCP for notes storage Gmail MCP for email drafts Database MCP for audit logs Slack MCP for team notifications Calendar MCP for review reminders 🤝 Contributing Contributions are welcome! Please follow these guidelines:

Source verification: Any new fee information must cite official sources Compliance first: Maintain facts-only, no-advice policy Test approval gates: Ensure all MCP actions require approval Update documentation: Keep README and source list current Code quality: Follow existing patterns and conventions 📄 License MIT License - See LICENSE file for details

🙋 Support For questions or issues:

Open a GitHub issue Email: support@example.com Documentation: Wiki 🙏 Acknowledgments SEBI for comprehensive mutual fund regulations AMFI for investor education resources NPCI for payment system documentation RBI for e-mandate framework guidelines Disclaimer: This tool is for educational purposes only. Always verify current fee structures with your AMC, broker, or financial advisor before making investment decisions. The developers are not responsible for any investment decisions made based on this information.

Last Updated: December 20, 2025