Over than 4,300 mutual fund distributors earn gross commission of over Rs.20 lakh in a year. - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Saturday, March 09, 2019

Over than 4,300 mutual fund distributors earn gross commission of over Rs.20 lakh in a year.


Over than 4,300 mutual fund distributors earn gross commission of over Rs.20 lakh in a year.

13% distributors earn more than Rs.20 lakh

About  4,300 distributors earn gross commission of over Rs.20 lakh in a year.

Of the 33,150 active distributors (defined as those having a minimum AUM of at least Rs.1 crore) can 13% or 4,300 of them earn gross commission of more than Rs.20 lakh annually, shows an analysis of the latest distributor AUM.

These distributors manage assets in excess of Rs.25 crore. We have taken trial commission of 0.80% to arrive at the gross commission earned by distributors.  However, the actual number may go up as the data covers AUA 95% of the total industry AUM.

That means, 87% or 28,850 distributors earn less than Rs.20 lakh annually and are eligible to get relief under the government’s move to defer the implementation of reverse charge mechanism (RCM) under GST norms.
The data shows that another 4,384 distributors earn between Rs.10 and Rs.20 lakh annually. These distributors manage AUA between Rs.12.5 crore and Rs.25 crore.

However, a majority of distributors i.e. 22,116 or 67% distributors earn between Rs.1 lakh and Rs.10 lakh a year.

The rest of 2,350 distributors earn between Rs.80,000 and Rs.1 lakh annually.

Overall, 87,000 distributors manage assets in excess of Rs.1 lakh.

AUM
Commission
No. of distributors
Rs.25 crore
Rs.20 lakh and above
4,300
Rs.12.5crore to 25 crore
Rs.10 lakh and Rs.20 lakh
4,384
Rs.1.25 crore to Rs.12.5 crore
Rs.1 lakh and Rs.10 lakh
22,116
Rs.1 crore to Rs.1.25 crore
Rs.80000 and Rs.1 lakh
2,350
Active distributors
At least Rs.1 crore
33,150
Overall no of distributors
At least Rs.1 lakh
87,000



Source: Cafemutual.com 
Over than 4,300 mutual fund distributors earn gross commission of over Rs.20 lakh in a year. Reviewed by S Chitra on March 09, 2019 Rating: 5 Over than 4,300 mutual fund distributors earn gross commission of over Rs.20 lakh in a year. 13% distributors earn more than Rs.20 lak...

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