13% distributors earn more than Rs.20 lakh annually

Of the 33,150 active distributors (defined as those having a minimum AUM of at least Rs.1 crore) can 13% or 4300 of them earn gross commission of more than Rs.20 lakh annually, shows an analysis of the latest distributor AUM.

These distributors manage assets in excess of Rs.25 crore. We have taken trial commission of 0.80% to arrive at the gross commission earned by distributors.  However, the actual number may go up as the data covers AUA 95% of the total industry AUM.

That means, 87% or 28,850 distributors earn less than Rs.20 lakh annually and are eligible to get relief under the government’s move to defer the implementation of reverse charge mechanism (RCM) under GST norms.

The data shows that another 4,384 distributors earn between Rs.10 and Rs.20 lakh annually. These distributors manage AUA between Rs.12.5 crore and Rs.25 crore.

However, a majority of distributors i.e. 22,116 or 67% distributors earn between Rs.1 lakh and Rs.10 lakh a year.

The rest of 2,350 distributors earn between Rs.80,000 and Rs.1 lakh annually.

Overall, 87000 distributors manage assets in excess of Rs.1 lakh.