Equity mutual fund SIPs boost distributors' income; AUM rise modest

Revenue from commissions saw double-digit growth in FY23

The rising popularity of equity mutual fund (MF) investing via the systematic investment plan (SIP) route led to double-digit revenue growth for MF distributors during 2022-23 (FY23), even as the industry’s overall assets under management (AUM) saw a modest 5 per cent rise.

During FY23, the top 1,700 distributors, who account for around 60 per cent of the regular AUM of the industry, raked in Rs 12,000 crore as gross commissions. This is 16 per cent higher than the total payout of Rs 10,400 crore they received in financial year 2021-22 (FY22).

During the same time, total assets of clients in MF