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The commission income of top mutual fund distributors in India went up 57% in FY 2022 even as their average AUM grew by 37%.
The commission data released by AMFI shows that the top MFDs earned a gross commission of Rs. 10,400 crore in FY 2022 compared to Rs. 6,600 crore in FY 2021. The average AUM during the two financial years stood at Rs. 13.60 lakh crore and 9.90 lakh crore, respectively.
|
Year |
Gross commissions |
net inflows |
AUM |
|
FY 2022 |
10,420 |
66,580 |
13,58,440 |
|
FY 2021 |
6,617 |
-5,840 |
9,88,653 |
*in Rs crore
MFDs Nikhil Thakkar and Nitesh Buddhadev attribute this to mark-to-market gains in equity funds, host of NFOs and increasing retail participation from B30 cities.
Also, the decline in debt assets and a surge in equity AUM resulted in a higher overall commission percentage, they say.
A report by IDFC MF shows that the share of equity schemes in total AUM of individual MFDs rose from 48% in FY 2021 to 55% in FY 2022. It also shows while the AUM of equity schemes rose 32% in FY2022, the AUM of debt schemes declined 13%.
The yearly commissions report by AMFI features around 1500 MFDs. MFDs who fulfil the following criteria qualify as top distributors and feature in the list:
- 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
