Mutual fund distributors earned Rs 6,134.52 crores in commissions in FY 2019 - 2020. Here are the top 20 distributors by commissions earned.
| Distributor | Commissions | AAUM |
|---|---|---|
| NJ IndiaInvest Pvt Ltd | 777.23 | 71560.8 |
| Axis Bank Limited | 415.89 | 50126.04 |
| State Bank of India | 374.9 | 81528.92 |
| HDFC Bank Limited | 294.08 | 71412.31 |
| ICICI Securities Limited | 278.35 | 33358.73 |
| Prudent Corporate Advisory Services Ltd | 229.74 | 22636.72 |
| ICICI Bank Limited | 185.65 | 40585.06 |
| Kotak Mahindra Bank Limited | 159.42 | 35567.01 |
| Anand Rathi Wealth Services Limited | 114.93 | 12922.48 |
| Citibank N.A | 114.48 | 25883.79 |
| IIFL Wealth Management Limited | 100.46 | 18990.4 |
| Hongkong & Shanghai Banking Corporation Ltd. | 99.61 | 18841.61 |
| Standard Chartered Bank | 76.48 | 16083.71 |
| Julius Baer Wealth Advisors (India) Private Limited | 73.11 | 13885.01 |
| Bajaj Capital Ltd. | 71.76 | 9826.705 |
| Karvy Stock Broking Limited | 66.55 | 10346.79 |
| Pioneer Client Associates Private Limited | 52.29 | 6783.36 |
| JM Financial Services Limited | 50.9 | 11077.85 |
| Geojit Financial Services Ltd | 43.98 | 4561.47 |
| Wealth India Financial Services Pvt Ltd | 39.47 | 6123.012 |
If you are a DIY (Do it yourself) investor it is a no brainer to invest in direct mutual funds and save ~1%. People still don’t seem to understand the importance of costs. Even that seemingly small 1% compounds over time and can significantly eat into your returns. For example on a Rs 5000 SIP over 20 years, you save 4.3 lakhs if you invest in direct mutual funds as compared regular plans.
Also, if you notice the top 20 distributors are dominated by banks which are notorious for mis-selling of financial products. There is absolutely no reason for anyone to invest in mutual funds through a bank.