Commission Bonanza Unfolds
FY2025 witnessed a remarkable 40% surge in commissions for mutual fund distributors, reaching ₹21,000 crore. This financial year was particularly lucrative.
NJ Indiainvest and Prudent Corporate Advisory emerged as frontrunners, showcasing impressive growth in their commission earnings, with a 30-35% CAGR over ten years. This boom is a testament to the dynamic growth in the market.
Top Earners Emerge
NJ Indiainvest and Prudent Corporate Advisory led the charge, securing ₹2,610 crore and ₹1,060 crore in commissions respectively. These national distributors had an AAUM of Rs 2.27 lakh crore and Rs 99,600 crore respectively in FY25. With a total market share of 12.4% (NJ Indiainvest) and 5% (Prudent Corporate Advisory) based on commission, their dominance is clear.
Market Shift Observed
The report highlights a shift towards independent distributors compared to banks. The share of national distributors and small agents increased to nearly 75% in FY2025. Banks are steadily losing market share, especially private and foreign banks. This shift is influencing the distribution landscape and how investors interact with mutual funds.
NFOs Fuel Growth
Elevated new fund offerings (NFOs) in FY2025 played a pivotal role in boosting distributor commissions. The total amount raised through NFOs reached a record high of approximately Rs 89,800 crore, significantly surpassing the Rs 54,400 crore in FY2024. This indicates a strong investor appetite and market confidence.
