Mutual Fund Distributors’ Earnings in India: Who Makes the Most?
Introduction
The mutual fund industry in India has grown exponentially over the past decade, with assets under management (AUM) crossing ₹58 lakh crore in 2025. With this massive growth, mutual fund distributors (MFDs) have become key players, helping investors choose the right schemes and channeling funds into the market.
But the most interesting part is – how much do these distributors earn through commissions? In this blog, we’ll break down the earnings of mutual fund distributors, the commission structure, top earners, and what it means for investors.
How Do Mutual Fund Distributors Earn?
Distributors earn through commissions paid by Asset Management Companies (AMCs). These are of two types:
-
Upfront Commission – A one-time payment when the investor buys units of a mutual fund.
-
Trail Commission – A recurring commission paid as long as the investor continues to hold the fund.
👉 The trail commission model is now dominant in India, ensuring long-term income for distributors.
Commission Rates in India
-
Equity Mutual Funds: 0.50% to 1.25% per year (trail commission)
-
Debt Mutual Funds: 0.10% to 0.50% per year
-
Hybrid Funds: 0.40% to 0.90% per year
For example, if a distributor brings in ₹100 crore AUM in an equity fund with 1% trail commission, they earn ₹1 crore annually as long as the money stays invested.
Top Mutual Fund Distributors in India (by Commission Earnings 2025)
According to industry reports and AMFI data, here are some of the highest-earning distributors in India:
-
NJ IndiaInvest Pvt. Ltd.
-
AUM: Over ₹1.7 lakh crore
-
Commission Earnings: ₹1,500+ crore annually
-
-
Axis Securities
-
AUM: ₹80,000+ crore
-
Commission Earnings: ₹600+ crore annually
-
-
ICICI Bank
-
AUM: ₹1 lakh+ crore in mutual funds
-
Commission Earnings: ₹800–900 crore annually
-
-
HDFC Bank
-
Strong presence in retail distribution
-
Commission Earnings: ₹700–800 crore annually
-
-
State Bank of India (SBI)
-
AUM via SBI Securities & SBI branches
-
Commission Earnings: ₹500–600 crore annually
-
Why Are Their Earnings Rising?
-
Rising Retail Participation – More than 5 crore mutual fund SIP accounts in India.
-
Growing AUM – Monthly SIP inflows crossed ₹22,000 crore in 2025.
-
Shift to Financial Products – Rising awareness, falling FD returns.
-
Regulatory Support – SEBI encouraging transparent trail-based commissions.
Should Investors Worry About Commissions?
Not really. Commissions are already built into the expense ratio of mutual funds. Whether you invest directly or through a distributor:
-
Direct Plans: Lower expense ratio, no distributor commission.
-
Regular Plans: Higher expense ratio, includes distributor commission.
👉 If you are confident about selecting funds, go with Direct Plans. If you need expert advice and handholding, a distributor can add value even after charging commissions.
Key Takeaways
-
Mutual fund distributors in India earn hundreds of crores annually through trail commissions.
-
NJ IndiaInvest, Axis Securities, ICICI Bank, HDFC Bank, and SBI are among the top earners.
-
Commissions depend on AUM size and type of funds distributed.
-
For investors, choosing between Direct vs Regular Plans depends on knowledge and comfort level.
Conclusion
Mutual fund distributors are an integral part of India’s investment ecosystem. Their rising earnings reflect not just their success but also the massive growth of mutual funds in India. For investors, the choice is simple:
-
If you want to save costs – go Direct.
-
If you want professional support – go Regular.
Either way, the mutual fund industry is here to stay, and distributors will continue to earn handsomely as India’s financial literacy improves.
टिप्पणियाँ