Mutual Funds Commission Banks have topped the list of mutual fund distributors that have earned the highest commissions By Value Research Going by the data released by AMFI on commissions earned by mutual fund distributors; banks seem to rule the roost. According to SEBI, mutual funds have to disclose the total commission and expenses it pays to distributors who satisfy one or more of the following conditions with respect to non-institutional (retail and HNI ) investors: presence in more than 20 locations, AUM of over R100 crore, over R1 crore commission received or R50 lakh from a single AMC. The top three positions remain the same with Citibank at the top followed by HDFC Bank and NJ IndiaInvest Pvt Ltd. Distributors commission includes both upfront and trail commission, where upfront and trail commissions are paid in case of equity funds, with only trail commissions paid in case of debt funds. The total commissions paid out was up 8 per cent compared to 2012-13 at R2582.29 crore, which is understandably in line with the increase in the assets managed by the industry. The top 10 distributors continue to garner over 47 percent of total commission which includes 7 banks. Interestingly this year the number of registered distributors qualifying for commissions declined. The impact of direct plans was not much visible, with the commissions earned, which could also be due to the increase in industry assets, which is a factor that links commission payouts. Top 10 Mutual Fund Distributors Distributor FY 2014 FY 2013 Citibank N.A 181.16 165.34 HDFC Bank 158.52 160.88 NJ IndiaInvest 148.67 124.23 IIFL Wealth 130.04 69.89 SPA Capital 120.74 50.33 ICICI Bank 117.86 86.59 Kotak Bank 99.08 85.61 Axis Bank 94.35 84.13 Standard Chart. Bank 89.48 88.17 HSBC 82.85 144.34 Total 2582.29 2388.63 Figures in Rs. crore
Posted on: Fri, 12 Sep 2014 11:43:45 +0000
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