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 ₹100 crore, over ₹1 crore commission received or ₹50 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. Distributor's 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 ₹2582.29 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|
|HDFC Bank Limited||158.52||160.88|
|IIFL Wealth Management||130.04||69.89|
|SPA Capital Services||120.74||50.33|
|Kotak Mahindra Bank||99.08||85.61|
|Standard Chartered Bank||89.48||88.17|
|Figures in ₹crore|