Brokers see hit on distribution income as flows in equity schemes taper

In April -- which was the first full month post-lockdown -- equity flows were down 47 per cent down to Rs 6,212 crore, reflecting the impact of lockdown

Brokerage houses are bracing for pressure on distribution income amid slowdown in equity scheme flows, along with falling asset values due to a correction in markets. 

“Distribution of equity and equity-linked products acco-unts for a significant part of the distribution income. The correction in asset prices will have an impact on this income stream,” Jimeet Modi, CEO of Samco Securities, said.

“Due to lockdown, it has been difficult to make fresh sales of mutual fund products. We are also seeing slowdown in equity scheme