Mutual fund distributors earned Rs 6100 crores in commissions in 2019-2020

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.

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