Mutual fund commission roulette spins big: ₹21,000 crore in FY25

Distributors strike it rich as client funds land on winning number

Even as commission-free ‘direct’ plans of mutual fund (MF) schemes gain currency, the MF distribution business continues to thrive. In 2024-25 (FY25), nearly 3,150 leading distributors earned ₹21,107 crore in commissions, with most large distributors reporting a steep jump in income.

 

State Bank of India, NJ IndiaInvest, Prudent Corporate Advisory Services, HDFC Bank, and ICICI Bank topped the charts, collectively pocketing ₹6,775 crore in FY25. 

NJ and Prudent are national distributors of financial products, running extensive sub-broking networks across the country. 

In the previous financial year (2023-24), the Association of Mutual Funds in India estimated total commission income for nearly 2,500 major distributors at ₹14,850 crore. In 2022-23, 1,781 distributors had earned ₹12,071 crore. 

Distributor commissions are tied to the assets under management (AUM) of their clients’ schemes. Payout growth, therefore, hinges on both price movements in scheme assets and the inflows distributors bring in. 

Amfi releases distribution income for select distributors, based on thresholds for AUM, branch network, and commissions earned.