A distribution fee is the annual service fee paid by the fund company to the seller or distributor of the fund. This fee is paid to the distributor as long as you hold units in the fund. These fees generally range between 0.25% and 1%, and are paid from the ongoing costs of the fund. A distribution fee is a fee for services. This means that the seller or distributor must provide services to the purchaser of the fund, such as answering any questions he might have about the performance of his fund, the free provision of mandatory documents and most recent NAV.
The distributor, also known as the fund underwriter of the fund, is the company that distributes the shares of the fund. This task usually includes offering the fund distributing fund literature, including KIID. This is what MeDirect does.