MFDs cash in big: Commissions increase over 20% on market liftoff

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Commissions paid to mutual fund distributors (MFDs) increased by over 20 per cent for most large fund houses in 2023-24 (FY24), driven by a sharp market rally and strong inflows.

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

Its sponsor, State Bank of India (SBI), accounted for nearly 50 per cent of the total payout, pocketing Rs 1,001 crore. In FY23, the state-owned lender’s share of