MFDs make big money: commissions rise by more than 20% due to market increase

Commissions paid to mutual fund distributors (MFDs) rose by over 20 per cent in 2023-24 (FY24) for most major fund houses, driven by strong market growth and strong inflows.

The largest fund, SBI Mutual Fund (MF), which now manages nearly Rs 10 trillion in assets, paid out Rs 2,025 crore to its key distributors — 21 per cent higher than the Rs 1,675 crore payout in 2022-23 (FY23).

The sponsor, State Bank of India (SBI), accounted for nearly 50 percent of the total disbursement, pocketing Rs 1,001 crore. In FY23, the state bank’s share in