Equity mutual fund asset boom drives surge in distributor commission

Around 2,500 MF distributors rake in Rs 14,850 cr in commissions last fiscal year

(This report has been updated)

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Even as commission-free ‘direct’ plans gain momentum in mutual fund (MF) investments, the distribution business continues its growth trajectory.

In 2023-24 (FY24), nearly 2,500 major MF distributors (MFDs) earned over Rs 14,850 crore in commissions, with most large distributors registering a sharp surge in income.

In the previous year (2022-23), the Association of Mutual Funds in India (Amfi) reported that the total commission income for the leading 1,781 distributors was Rs 12,071 crore. In 2021-22, 1,544 distributors earned Rs 10,420 crore.

According to top MFDs, the income surge is ascribed to