Thanks to market rally and healthy inflows in equity funds, India’s top 20 mutual fund distributors now manage almost 24% of industry’s total AUM, shows an analysis of AMFI data.
AMFI data shows that these distributors manages close to Rs.5.19 lakh crore as on March 2018. In FY 2016-17, the top distributors managed AUM of Rs.3.94 lakh crore.
In addition, the gross commission to the top 20 mutual fund distributors went up 78%, from Rs.2971 crore in FY16-17 to Rs.5,278 crore in FY17-18. At the same time, the assets under management of the mutual fund industry rose 22% in FY 2017-18, i.e., from Rs.17.55 lakh crore as on March 2017 to RS.21.36 lakh crore in March 2018.
Largest distributors by commission earned
Among top 20 distributors, NJ India remained the largest mutual fund distributor. NJ India earnings grew from Rs.443 crore in FY 2016-17 to Rs.787 crore in FY 2016-17. Its assets under advisory increased by Rs19,198 crore to reach Rs50,157 crore, during the same period.
The second largest distributor is HDFC Bank, which earned close to Rs.641 crore, followed by SBI Bank at Rs.558 crore and Axis Bank at Rs.538 crore.
Among the distributors who recorded the highest growth in commission earnings in percentage terms were Anand Rathi, HDFC Securities and SBI Bank.
It is pertinent to mention here that net earnings of these distributors are less than the gross commission since they incur expenses on running their businesses.
Gross commission of top 20 mutual fund distributor in FY 2017-18
Source: AMFI
Assets under advisory
The assets under advisory are an indicator of how much commission the distributor earns. For instance, ICICI Bank managed AUM of Rs.38262 crore and earned Rs470 crore (1.30% of the assets under advisory). HDFC Bank managed Rs63370 crore and earned Rs641 crore, that is, 57 basis points of the assets under advisory.
While HDFC Bank stood at second position in terms of gross commission received last fiscal, it continued to hold the mantle of being the largest distributor in terms of AUA. HDFC Bank’s MF AUA increased by Rs17555crore, from Rs45,815 crore in FY 2016-17 to Rs.63370 crore in 2017-18.
NJ India was at second position in terms of AUA ranking at Rs50147 crore, followed by Axis Bank (Rs45937crore) and SBI Bank at RS.42697 crore.
Assets under advisory of top 20 distribution in FY 2017-18
Source: AMFI
