Two national distributors (NDs) – NJ IndiaInvest and Prudent Corporate Advisory commanded highest commission share in the MF industry. Both these distributors earn gross commission of over 1% of their total assets under advisory (AUA).
Notably, both distributors run a sub-broking model where individual MFDs have tie ups with them to execute transaction in mutual funds and manage business operations.
NJ IndiaInvest has topped the list with gross commission of 1.13% of the total assets while Prudent Corporate Advisory commanded 1.06% of its AUA in FY 2020-21.
Axis Bank and Anand Rathi Wealth followed both the NDs with gross commission of 0.89% of the total assets.
Among top 20 distributors based on assets, SPA Capital Services has the lowest commission share at 0.17%.
We have arrived at the commission by dividing gross commission and assets under management. Here is the list of MFDs based on commission to AUM ratio:
|
Distributor |
AUM for FY 2020-21 |
Commission |
AUM to Commission % |
|
NJ IndiaInvest |
77,005 |
874 |
1.13 |
|
Prudent Corporate Advisory |
24,915 |
263 |
1.06 |
|
Axis Bank |
43,949 |
393 |
0.89 |
|
Anand Rathi Wealth |
11,127 |
99 |
0.89 |
|
ICICI Securities |
35,529 |
264 |
0.74 |
|
Karvy Stock Broking |
9,302 |
60 |
0.65 |
|
ICICI Bank |
38,526 |
227 |
0.59 |
|
JM Financial Services |
10,758 |
59 |
0.55 |
|
Kotak Mahindra Bank |
32,399 |
173 |
0.53 |
|
Standard Chartered Bank |
14,712 |
77 |
0.52 |
|
State Bank of India |
96,712 |
489 |
0.51 |
|
HDFC Bank |
67,149 |
344 |
0.51 |
|
Darshan Services |
18,027 |
92 |
0.51 |
|
HSBC. |
16,725 |
85 |
0.51 |
|
Citibank N.A |
21,537 |
107 |
0.5 |
|
Julius Baer Wealth Advisors (India) |
15,180 |
71 |
0.47 |
|
IIFL Wealth Finance |
23,480 |
89 |
0.38 |
|
Aditya Birla Finance |
10,506 |
35 |
0.33 |
|
Batlivala & Karani Securities India |
9,306 |
19 |
0.2 |
|
SPA Capital Services |
14,545 |
24 |
0.17 |
*All numbers are in Rs crore
SBI has highest AUM
State Bank of India has the highest assets under advisory among mutual fund distributors with average AUM of Rs 96,712 crore in FY 2021.
NJ IndiaInvest has the second highest AUM of Rs 77,000 crore followed by HDFC Bank with Rs 67,149 crore assets.
However, the highest AUM figure does not translates into highest revenue for SBI. Data shows that second-ranked NJ IndiaInvest has earned almost twice (Rs 874 crore) of what SBI received (Rs 489 crore) for selling MF schemes.
The AUM of SBI Bank has gone up by Rs 15,183 crore during the previous financial year while NJ IndiaInvest logged a gain of Rs 5,444 crore. The rest three in top five — HDFC Bank, Axis Bank and ICICI Bank — registered a decline in assets. Axis Bank has recorded highest decline in AUM at Rs 6,177 crore followed by HDFC Bank (Rs 4,263 crore).
