# Mutual fund distributors earned Rs.12071 crores in mutual funds commission in FY22-23

**URL:** https://tradingqna.com/t/mutual-fund-distributors-earned-rs-12071-crores-in-mutual-funds-commission-in-fy22-23/152563
**Category:** Personal finance
**Created:** [September 4, 2023, 1:07pm UTC](https://tradingqna.com/t/mutual-fund-distributors-earned-rs-12071-crores-in-mutual-funds-commission-in-fy22-23/152563 "2023-09-04T13:07:51Z")
**Posts on this page:** 1
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### Author: ![Meher\_Smaran](https://tradingqna.com/user_avatar/tradingqna.com/meher_smaran/32/45882_2.png) [@Meher\_Smaran](https://tradingqna.com/u/Meher_Smaran)
#### Post date: [September 4, 2023, 1:07pm UTC](https://tradingqna.com/t/mutual-fund-distributors-earned-rs-12071-crores-in-mutual-funds-commission-in-fy22-23/152563/1 "2023-09-04T13:07:51Z")

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Like every year, AMFI (Association of Mutual Funds in India) released a yearly report on commissions earned by mutual fund distributors. In FY 2022-23, The commissions earned by the distributors soared nearly 16% YoY to over Rs.12,071 crores.

You can either use the regular plan or the Direct plan when investing in mutual funds. When investing in a regular plan, you have to pay commissions, which can be as high as 1% yearly on the invested amount, as long as you’re invested.

If you’re investing in a direct plan, you pay no such commissions; [ on Coin, we offer zero commission direct mutual funds.  
 ](https://coin.zerodha.com/)

_For example, Over the past 5 years, SBI Bluechip fund would have given you 79% returns if you would have taken the regular plan, Whereas, the direct plan would have fetched you 86% returns._

![](https://lh6.googleusercontent.com/0jZmYtc3liqHyAyHIir9vj08gzLfPAShzP1HkSdX8FZdAXPn4nerHEfYCRmXrv8PgI6XT758BWqsfMrlZR4xSekoxX0d0bF9fHA5oZXF-0JTnvXi6xmYNjgYlJENFj9AtkFLQWS1asrvt1_iwZgm25E)

**As the corpus compounds, The 7% difference would start hurting as compounding works both ways i.e., even for commissions.**

You can check this [post](https://tradingqna.com/t/mutual-fund-distributors-earned-rs-6617-crores-in-commissions-in-fy-2020-2021/115516) by @Bhuvan , Where he explained in detail on how these extra commissions hurt investors in the long run as corpus grows

### Commission earned by Mutual Fund distributors in FY 22- 23

Here’s a list of the top 20 mutual fund distributors and the commissions they earned:

| Name of the ARN Holder | Commission recd (Cr) |
| --- | --- |
| NJ IndiaInvest Pvt Ltd | 1,538.98 |
| State Bank of India | 905.46 |
| HDFC Bank Limited | 669.27 |
| Prudent Corporate Advisory Services Ltd | 583.04 |
| Axis Bank Limited | 542.25 |
| ICICI Securities Limited | 453.63 |
| ICICI Bank Limited | 397.82 |
| Kotak Mahindra Bank Limited | 297.28 |
| Anand Rathi Wealth Limited | 212.79 |
| Hongkong & Shanghai Banking Corporation Ltd. | 135.49 |
| IIFL Wealth Prime Limited | 123.64 |
| Standard Chartered Bank | 120.95 |
| Citibank N.A | 117.62 |
| Julius Baer Wealth Advisors (India) Private Limited | 111.10 |
| Bajaj Capital Ltd. | 102.40 |
| Bank Of Baroda | 99.82 |
| HDFC Securities Ltd | 96.69 |
| Geojit Financial Services Ltd | 81.72 |
| Wealth India Financial Services Pvt Ltd | 75.80 |
| Sapient Wealth Advisors And Brokers Pvt Ltd | 74.33 |

#### Fun fact

> Top 20 distributors earn 56% of the entire mutual fund industry’s commission while Top 50 distributors make more than 65% of the industry’s commission.

As you can see, the commission income for the distributors especially the top ones is skyrocketing :

![](https://lh3.googleusercontent.com/bWWByxNNJMclTF3it0iMMsLiDrZZxZFHGloZnJVDekcC99FgyCZK7lMaPW7woJxdwEER1kprey1E8U21L8uosIsdmrOUZCZ8BCRsHhLX1XLpDRciR65Ajq8u3EGMsOyW5lFXHkqDEM_w1ZvPL9dANOE) ![](https://lh5.googleusercontent.com/Kjb4qR_WsE-0ngcr0-DXTb54cw_Vny56-qFdXJbNrRz_e8XDY0DZeKrIcoqJp3AAp8cTIZQpwVh5p9Qn_4G6ISMXXqqhywGZo1E-LoEuZdRjIfgSrKojWLVmiJHnS776W-qo4Pq-JA_axMdl5Ra_7Xw)

If you are new to investing in Mutual funds and all of this seems gibberish, Don’t worry, You can check out the following Varsity’s chapter on Mutual funds:

> **[All About Personal Finance on Mutual Funds Investment](https://zerodha.com/varsity/module/personalfinance/)**
>
> Personal finance guide focused on mutual funds - retirement planning, equity/debt funds, NAV, expense ratios, portfolio building, and asset allocation.

You can also share your queries and thoughts on this thread.