NJ Invest, SBI earn most in MF commissions in FY22 | The Financial Express

NJ Invest, SBI earn most in MF commissions in FY22

Anand Rathi Wealth’s commission grew 75% to Rs 173 crore during the year, the most among the top 10 earners.

NJ Invest, SBI earn most in MF commissions in FY22
Banks dominated the list of top earners.

By Ashley Coutinho

NJ India Invest was the top distributor for the financial year 2022, followed by the State Bank of India (SBI) and HDFC Bank.

NJ pocketed gross commissions to the tune of Rs 1,298 crore during the year, data from the Association of Mutual Funds in India (Amfi) showed. The national distributor had Rs 1.09 trillion in average assets under management (AUM) for FY22. SBI and HDFC Bank took home Rs 735 crore and Rs 581 crore, respectively in gross commissions.

Anand Rathi Wealth’s commission grew 75% to Rs 173 crore during the year, the most among the top 10 earners.

Banks dominated the list of top earners. Axis Bank, ICICI Bank, Kotak Mahindra Bank and Citibank were the other banks among the top 10 gross commission earners. The six banks put together earned Rs 2,601 crore in commission.

Bank of Baroda was a new entrant in the top 20, with a gross commission of Rs 69.6 crore on an average AUM of over Rs 7,000 crore.

For quite a few of the banks, a bulk of the commission earned was by way of selling schemes of its mutual funds, said experts.

Group-wise, ICICI was the second-highest earner with commissions of Rs 757 crore, with ICICI Securities taking home Rs 401 crore and ICICI Bank Rs 356 crore. HDFC group was the fourth largest earner with HDFC Sales and HDFC Securities ranking at Rs 0.8 crore and Rs 74.7 crore, respectively. Next is Axis with total earnings of Rs 561 crore split between Axis Bank (Rs 538 crore) and Axis Securities (Rs 23 crore).

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SBI managed the most assets, with an average AUM of Rs 1.2 trillion in FY22, 28% higher than its average AUM of Rs 97,000 crore in the precious year. It is followed by NJ India (Rs 1.09 trillion), HDFC Bank (Rs 84,454 crore), Axis Bank (Rs 53465 crore) and ICICI Bank (Rs 47,682 crore) in the top five highest AUM list.

Overall, 1,544 distributors earned up to Rs 10,420 crore by way of commission in FY22.

Amfi reports the commission income of distributors with income exceeding Rs 1 crore or distributors who have such income exceeding Rs 50 lakh from a single fund house or those who operate in more than 20 locations.

Last year, the commissions reported by Amfi of such distributors had totalled Rs 6,617 crore.

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