Close to 1800 MFDs Qualify as Top Distributors in FY 2023
In FY 2023, the financial industry has seen a significant rise in the number of Mutual Fund Distributors (MFDs) qualifying as top distributors. The analysis of Asset Under Management (AUM) disclosure reveals that a total of 1781 MFDs have achieved top distributor status in FY 2023, marking a substantial increase from the 1544 top MFDs in FY 2022. This indicates that 237 new MFDs have earned recognition as top distributors in FY 2023.
These top distributors have collectively managed an impressive AUM of Rs. 14.75 lakh crore and received a gross commission of Rs. 10,500 crore during FY 2023. Notably, these top MFDs are responsible for overseeing 65% of the total AUM under various plans.
In comparison, during FY 2022, the top 1500 MFDs collectively managed an AUM of Rs. 13.50 lakh crore and received a gross commission of Rs. 10,400 crore.
According to the Securities and Exchange Board of India (SEBI), distributors qualify as top distributors if they meet any of the following four criteria:
- Having a presence in at least 20 locations.
- Managing an AUM of at least Rs. 100 crore.
- Receiving a gross commission of at least Rs. 1 crore.
- Receiving a gross commission of Rs. 50 lakh from a single fund house.
An in-depth analysis of the last five years reveals a remarkable surge in the count of top distributors, reaching close to 1800. During this period, AUM increased by 50% from Rs. 10 lakh crore in FY 2019 to Rs. 15 lakh crore in FY 2023, and gross commission earnings grew by 32%, from Rs. 7948 crore to Rs. 10532 crore.
Ganesh Kumar
https://finplay.in/Mutual Fund Expert and Stock Market Enthusiast. Indian Stock Markets to the Moon 🚀