MF sales may dip as regulatory changes choke distributor commissions

Experts say distributors might re-look at viability of selling MF products in light of new changes

The surge in commissions generated from mutual fund (MF) distribution in previous years is showings signs of waning following the changes in commission and fee structure brought about by the Securities and Exchange Board of India (Sebi).

In 2018-2019, MFs’ payouts to distributors through commissions and other distribution-related expenses dropped seven per cent to Rs 7,938 crore, according to data collated by the Association of Mutual Funds in India. These distributors accounted for Rs 2 trillion worth of assets managed by the MF industry in 2018-2019.

Experts say apart from the regulatory changes, market volatility has also contributed to the