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Distributors earned better commissions for every Rs. 100 AUM in FY 2022 than in FY 2021 as the share of equity schemes in the overall AUM went up following a strong market rally in the previous financial year.
An analysis of commissions data released by AMFI shows that the commissions-to-AUM ratio of majority of top distributors was higher in FY 2022 than in FY 2021. For instance, NJ India received Rs. 1.19 for every Rs. 100 AUM in FY 2022 compared to Rs. 1.13 a year before.
The highest growth in commission ratio among the top 20 distributors was in the case of Bank of Baroda. Its commissions per Rs. 100 AUM went up from Rs. 0.74 to Rs. 0.99. HDFC Bank was the second biggest gainer as its average commissions rose from 0.51% to 0.66%.
Overall, NJ India had the highest commission ratio among top 20 distributors at 1.19% in FY 2022, followed by Axis Bank (1.01%), Anand Rathi Wealth (1%) and Bank of Baroda (0.99%). Geojit Financial Services (0.99) and Prudent Corporate Advisory (0.97) were the other players with commission ratio of over 0.9%.
|
Distributor |
Commissions to AUM ratio FY 2022 (%) |
Commissions to AUM ratio FY 2021 (%) |
Difference (percentage points) |
|
NJ IndiaInvest |
1.19 |
1.13 |
0.05 |
|
Axis Bank |
1.01 |
0.89 |
0.11 |
|
Anand Rathi Wealth |
1.00 |
0.89 |
0.11 |
|
Bank Of Baroda |
0.99 |
0.74 |
0.26 |
|
Geojit Financial Services |
0.98 |
1.02 |
-0.04 |
|
Prudent Corporate Advisory |
0.97 |
1.06 |
-0.09 |
|
ICICI Securities |
0.84 |
0.74 |
0.10 |
|
HDFC Securities |
0.82 |
0.70 |
0.12 |
|
Bajaj Capital |
0.81 |
0.72 |
0.09 |
|
ICICI Bank |
0.75 |
0.59 |
0.16 |
|
HDFC Bank |
0.69 |
0.51 |
0.18 |
|
Kotak Mahindra Bank |
0.66 |
0.53 |
0.12 |
|
JM Financial Services |
0.61 |
0.55 |
0.06 |
|
Standard Chartered Bank |
0.61 |
0.52 |
0.09 |
|
Darshan Services Private |
0.61 |
0.51 |
0.10 |
|
State Bank of India |
0.59 |
0.51 |
0.09 |
|
Citibank N.A |
0.57 |
0.50 |
0.07 |
|
HSBC |
0.56 |
0.51 |
0.05 |
|
Julius Baer Wealth Advisors (India) |
0.50 |
0.47 |
0.04 |
|
IIFL Wealth Prime |
0.46 |
0.38 |
0.09 |
