AMFI’s latest data on commission disclosure shows that 1037 distributors manage nearly 40% of the industry’s AUM.
As on March, these distributors managed Rs.10.05 lakh crore, which is nearly 40% of the industry’s total AUM of Rs.25.50 lakh crore.
Concentration of AUM
Currently, there are 87,000 distributors in the MF industry having assets under advisory of at least Rs.1 crore. Given that 1037 top distributors handle 40% of the industry’s asset and 41% come from direct plans, the rest 86,000 distributors manage less than 20% of the total industry AUM.
The concentration thickens further, as the assets managed by the top 20 players account for nearly 22% of the total AUM.
According to SEBI, top distributors are those who meet any of these four criteria:
- Having presence in at least 20 locations
- Managing AUM of at least Rs.100 crore
- Receiving gross commission of at least Rs.1 crore
- Receiving gross commission of Rs.50 lakh from a single fund house.
The number of ‘top distributors’ is increasing every year, an encouraging sign for the distributor fraternity. The number of distributors falling under the purview of SEBI criteria of ‘top distributors’ has increased to 1037 in FY 2018-19, from 1017 in FY 2017-18, 687 in FY 2016-17 and from 540 in FY 2015-16.
