Ban on upfront commission has impacted distributors earnings.
Even as the assets under advisory (AUA) of top distributors increased by 12% i.e. from Rs.5.01 lakh crore to Rs.5.73 lakh crore, gross commission earned by them reduced marginally from Rs.5252 crore to Rs.4795 crore last fiscal.
Largest distributors by commission earned
Among the top 20 distributors, NJ India remained the largest mutual fund distributor. NJ India earnings grew from Rs.787 crore in FY 2017-18 to Rs.808 crore in FY 2018-19. Its assets under advisory increased by close to Rs.13000 crore to reach Rs.62,947 crore during the same period.
Axis Bank piped HDFC Bank and SBI Bank to become the second largest distributor. The bank earned close to Rs.554 crore, followed by HDFC Bank at Rs. 497 crore and SBI at Rs.497 crore.
Among the distributors who recorded the highest growth in commission earnings in percentage terms were Anand Rathi Wealth Services, Aditya Birla Finance and Pioneer Client Associate.
Interestingly, only two distributors – Anand Rathi Wealth Services and Aditya Birla Finance managed to record double digit growth last fiscal in terms of growth in gross commission. Most distributors saw either single digit growth or negative growth in their gross commission last fiscal.
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 2018-19
|
Name of the ARN Holder |
Gross Amount paid FY 2018-19 |
Gross Amount paid FY 2017-18 |
Absolute Change |
Change in % |
|
NJ India Invest Pvt Ltd |
808.00 |
787.00 |
21.00 |
3% |
|
Axis Bank Limited |
554.00 |
538.00 |
16.00 |
3% |
|
HDFC Bank Limited |
497.00 |
641.00 |
-144.00 |
-22% |
|
State Bank of India |
488.00 |
558.00 |
-70.00 |
-13% |
|
ICICI Bank Limited |
355.00 |
470.00 |
-115.00 |
-24% |
|
ICICI Securities Limited |
319.00 |
317.00 |
2.00 |
1% |
|
Kotak Mahindra Bank Limited |
255.00 |
274.00 |
-19.00 |
-7% |
|
Prudent Corporate Advisory Services Ltd |
235.00 |
218.00 |
17.00 |
8% |
|
Citibank N.A |
182.00 |
249.00 |
-67.00 |
-27% |
|
IIFL Wealth Management Limited |
176.00 |
175.00 |
1.00 |
1% |
|
Standard Chartered Bank |
151.00 |
185.00 |
-34.00 |
-18% |
|
Anand Rathi Wealth Services Limited |
121.00 |
98.00 |
23.00 |
23% |
|
Hongkong & Shanghai Banking Corporation Ltd. |
114.00 |
121.00 |
-7.00 |
-6% |
|
Indus Ind Bank Ltd |
95.00 |
160.00 |
-65.00 |
-41% |
|
Bajaj Capital Ltd. |
92.00 |
101.00 |
-9.00 |
-9% |
|
Julius Baer Wealth Advisors (India) Private Limited |
91.00 |
88.00 |
3.00 |
3% |
|
Karvy Stock Broking Limited |
88.00 |
93.00 |
-5.00 |
-5% |
|
JM Financial Services Limited |
62.00 |
79.00 |
-17.00 |
-22% |
|
Pioneer Client Associates Private Limited |
59.00 |
54.00 |
5.00 |
9% |
|
Aditya Birla Finance Limited |
53.00 |
46.00 |
7.00 |
15% |
|
Total |
4795 |
5252 |
-457 |
-0.087 |
Assets under advisory
The assets under advisory are an indicator of how much commission the distributor earns. For instance, Kotak Mahindra Bank managed AUM of Rs.37555 crore and earned Rs.255 crore (1.08% of the assets under advisory). AMFI data shows IndusInd Bank, HSBC Bank and NJ India received over 2% of commission from the assets they manage last fiscal.
In terms of AUA, while HDFC Bank stood at third position in terms of gross commission received last fiscal, it continued to hold the mantle of being the largest distributor. HDFC Bank’s MF AUA increased by Rs.9574 crore, from Rs.63370 crore in FY 2017-18 to Rs.72944 crore in FY 2018-19.
SBI was at second position in terms of AUA ranking at Rs.64280 crore, followed by NJ India at Rs.62947 (Rs45937crore) and Axis Bank at Rs.52923 crore.
Among the top 20 distributors, SBI recorded highest growth in its AUA both in terms of absolute and percentage growth last fiscal. Its AUA grew by over Rs.21,000 crore or 51% to reach AUA of Rs.64280 crore.
Assets under advisory of top 20 distribution in FY 2018-19
|
AMC |
AUM FY 2018-19 |
AUM FY 2017-18 |
Change |
Change in % |
|
HDFC Bank |
72944 |
63370 |
9574 |
15% |
|
State Bank of India |
64280 |
42697 |
21583 |
51% |
|
NJ India |
62947 |
50157 |
12790 |
25% |
|
Axis Bank |
52923 |
45937 |
6986 |
15% |
|
ICICI Bank |
41803 |
38262 |
3541 |
9% |
|
Kotak Mahindra Bank |
37555 |
40307 |
-2752 |
-7% |
|
ICICI Securities |
34510 |
29811 |
4699 |
16% |
|
IIFL Wealth |
30568 |
30752 |
-184 |
-1% |
|
Citi Bank |
28664 |
30084 |
-1420 |
-5% |
|
Prudent |
19033 |
13997 |
5036 |
36% |
|
HSBC |
18107 |
18115 |
-8 |
0% |
|
Standard Chartered |
17905 |
17598 |
307 |
2% |
|
Julius Bear |
13838 |
13425 |
413 |
3% |
|
SPA Capital |
12817 |
11481 |
1336 |
12% |
|
JM Financial |
11926 |
16026 |
-4100 |
-26% |
|
Aditya Birla Finance |
11273 |
10144 |
1129 |
11% |
|
Anand Rathi |
11242 |
8986 |
2256 |
25% |
|
Karvy Stock Broking |
10170 |
9350 |
820 |
9% |
|
Bajaj Capital |
10128 |
9978 |
150 |
2% |
|
L&T Capital Markets |
10043 |
9184 |
859 |
9% |
|
Total |
572676 |
509661 |
63015 |
12% |
