Mutual fund (MF) employees will pocket bumper bonuses for 2017-18, a period characterised by record sales and exponential asset growth. The bonuses will range from 40-60 per cent. Payouts for top-performing fund managers will be up to 100 per cent of their annual pay, said officials in the know.
MFs have garnered record assets in the past one year, led by increased investor participation through systematic investment plans (SIPs) and robust returns in mid-cap schemes. The shift in investor preference from physical assets such as real estate and gold to financial savings has also boosted inflows into the sector.
“The combination of demonetisation, lower rates on other fixed income products and an uptick in the equity market has made mutual