Distribution commission pool of mutual funds jumps 2.3x, shows data

The sharp spike in commission comes on the back of surge in the equity markets and sustained flows into equity MF schemes

The commission pocketed by entities distributing mutual fund (MF) products has jumped nearly 2.3x, from Rs 4,625 crore in 2020-21 to Rs 10,420 crore in 2021-22 (FY22), reveals data released by industry body Association of Mutual Funds in India.

During this period, the average assets under management for the industry grew 19.5 per cent, from Rs 32.1 trillion in the January-March 2021 quarter to Rs 38.4 trillion during the January-March 2022 quarter.

The sharp spike in commission comes on the back of a surge in equity markets and sustained flows into equity MF schemes.

“There are three main factors that