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The number of distributors who qualify as top distributors went up sharply in FY 2024.
An analysis of AUM disclosure of top distributors shows that over 2499 MFDs qualify as top distributors in FY 2024. In FY 2023, the industry had 1781 top MFDs. This indicates that 781 new MFDs have qualified as top distributors in FY 2023.
These top distributors managed AUM of Rs.18.53 lakh crore and received gross commission of close to Rs.12,000 crore in FY 2024. This indicates that commission to AUM ratio of these MFDs is 0.64% i.e. these top MFDs make 64 bps on the assets they manage for investors.
In FY 2023, the top 1800 MFDs managed AUM of Rs.14.75 lakh crore with gross commission of Rs.10,500 crore.
Further, our analysis shows that these top MFDs account for 59% of the total AUM under regular plans. The MF industry had regular plan AUM of Rs.31.42 lakh crore in March 2024.
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
The analysis of the last five years indicates that the count of top distributors has surged by over 177% from 903 to 2499.
During this period, the AUM went up by over 85% from Rs.10 lakh crore in FY 2020 to Rs.18.53 lakh crore in FY 2024 and gross commission earning by almost 100% i.e. from Rs.6134 crore to Rs.12000 crore.
