The gross commission earned by India's top mutual fund distributors has gone up in FY 2021 after declining sharply in FY 2020.
Data released by AMFI shows that the top 1,087 MFDs have received gross commission of Rs.6,617 crore in FY 2021 as against Rs.6,148 crore in FY 2020.
The surge in commission may be a result of mark-to-market gains and more number of distributors qualifying as 'top MFDs'. While the key indices like Nifty 50 and Sensex rallied by over 70% each in FY 2021, the total number of top distributors increased from 903 to 1,087 in the last financial year.
On the other hand, the assets under advisory (AUA) of top distributors has declined by over Rs.22,000 crore or 2% to Rs.9.89 lakh crore. In FY 2020, these MFDs managed AUA of Rs.10.10 lakh crore.
Gross commission data comparison (all numbers are in Rs crore):
|
Year |
Gross commission |
Net inflows |
AUM |
|
FY21 |
6,617 |
-5,840 |
9,88,653 |
|
FY20 |
6,148 |
-47,882 |
10,11,043 |
The AUA of top MFDs is now 31% of the total industry AUM of Rs.32 lakh crore as on March 2021. In FY 2020, these MFDs managed market share of 40%. The shrinkage in market share is largely due to emergence of online platforms.
Net inflows through these distributors was in the negative range for the second year in a row. Data shows outflow of Rs.5,840 in FY 2021 as against outflow of Rs.47,882 crore in FY 2020.
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
