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The number of distributors who qualify as top distributors also went up sharply in FY 2023.
An analysis of AUM disclosure of top distributors shows that over 1781 MFDs qualify as top distributors in FY 2023. In FY 2022, the industry had 1544 top MFDs. This indicates that 237 new MFDs have qualified as the top distributors in FY 2023.
These top distributors managed AUM of Rs.14.75 lakh crore and received gross commission of Rs.10,500 crore in FY 2023. These top MFDs account for 65% of the total AUM under plans.
In FY 2022, the top 1500 MFDs managed AUM of Rs.13.50 lakh crore with gross commission of Rs.10,400 crore.
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
Further analysis of the last five years indicates that the count of top distributors has surged by over 65% to reach close to 1800. During this period, the AUM went up by 50% from Rs.10 lakh crore in FY 2019 to Rs.15 lakh crore in FY 2023 and gross commission earning by 32% i.e. from Rs.7948 crore to Rs.10532 crore.
