Volatile market conditions do not seem to have affected the largest mutual fund distributors in India. In fact, 13 out of the top 20 MF distributors have seen an increase in their commission revenues in FY 2011-12.
As per latest AMFI data, the asset management industry has paid a total of Rs 1860 crore in commissions to 269 large distributors in FY 2011-12.
The share of these 20 large MF distributors has increased from 57% in FY 2010-11 to 63% in FY 2011-12 in terms of revenues. (See below table)
HSBC Bank held its mantle as the largest mutual fund distributor in the banking category while Surat based NJ India Invest continues to remain the top MF distributor in the national distributor category in FY 2010-11 and FY 2011-12 as well.
N J India started mutual fund distribution in 1994. “NJ India Invest is a SIP machine. The average maturity of their SIPs is nine years. They have built a perpetual book of SIPs over the years. They have one of the best SIP models in the country,” says Karan Datta, National Sales Head, Axis Mutual Fund.
Citibank N.A and HSBC Bank registered the highest absolute increase in commission revenues of Rs 41 crore (from Rs 88 crore in FY11 to Rs 129 crore FY12) and Rs 35 crore (from Rs 119 crore in FY11 to Rs 154 crore in FY12) respectively. ICICI Bank saw the third largest increase in commissions from Rs 35 crore in FY 2010-11 to Rs 55 crore in FY 2011-12.
Overall, these top 20 distributors saw an increase of Rs 148 crore in commission revenues in FY 2011-12 (Rs 1,174 crore) as compared to FY 2010-11 (Rs 1026 crore).
The
Royal Bank of Scotland N V, State Bank of India, Aditya Birla Money Mart, Karvy
Stock Broking and JM Financial Services registered a dip in their commission in
FY 2011-12 as compared to FY 2010-11. The
commission revenues of SPA Capital Services remained unchanged at Rs 33 crore.
Also Read: Commissions to distributors remain same for most AMCs in FY 2012
