What does a mutual fund distributor earn for investors?

India’s mutual fund distribution business generated ₹27,335 crore in commissions in FY2024-25, but the income is distributed very unevenly across different types of distributors. Banks and bank-associated brokers earned the most per entity, while thousands of smaller distributors accounted for a much smaller share of the commission pool.

According to data published in the June edition of 1 Finance Magazine, banks and bank-associated brokers received ₹6,330 crore in mutual fund commissions in FY2024-25. There were just 50 entities in this category, translating into an average annual commission income of ₹126.6 crore per entity.

Wealth managers and corporate mutual fund distributors formed another major category. The 1,591 entities in this segment received ₹11,629 crore, or an average of around ₹7.31 crore per entity during the year.

Fintech platforms, meanwhile, accounted for ₹458 crore across 43 entities. This works out to an average annual commission income of approximately ₹10.65 crore per entity.

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Individual mutual fund distributors disclosed through AMFI numbered 1,474 and collectively received ₹2,689 crore in commissions. Their average annual income from commissions was around ₹1.82 crore per entity.

What about smaller distributors?

The largest group by number consists of smaller or non-disclosed distributors. The table estimates that there were around 2,03,042 such distributors in FY2024-25. Their estimated commission pool was approximately ₹6,229 crore, translating into an average of about ₹3.07 lakh per distributor for the year.

Importantly, this figure is an estimate, not a directly disclosed number. The source notes that the approximately ₹6,229 crore is the residual amount after subtracting commissions reported by AMFI-disclosed segments from the total commission pool of ₹27,335 crore.

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A highly concentrated business

The numbers show a sharp concentration of commission income among a small proportion of distributors.

The four AMFI-disclosed categories together comprised 3,158 entities — 1,591 wealth managers and corporate MFDs, 50 banks and bank-associated brokers, 43 fintech platforms and 1,474 individual MFDs.

These 3,158 distributors represent only around 1.5% of the estimated 2,06,200 distributors but accounted for approximately ₹21,106 crore, or 77.2% of the total ₹27,335 crore commission pool.

At the other end, more than 2 lakh smaller or non-disclosed distributors collectively accounted for the remaining estimated ₹6,229 crore.

Where can investors check distributor commissions?

The data also highlights the transparency available through AMFI’s commission disclosure database. According to the source, commission details are publicly available for distributors falling within the disclosure threshold.

For investors, the figures illustrate that mutual fund distribution is not a uniform-income business. Earnings vary significantly depending on the type and scale of the distributor, the assets serviced and the distribution channel through which investors buy mutual funds.

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