Backed by a strong bull run, more and more investors have started investing in mutual funds (MF) through systematic investment plans, said Association of Mutual Funds in India (AMFI).

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Asset management companies (AMCs) paid a whopping Rs 8,533 crore to about 980 top MF distributors through commission and expenses in 2017-18, 70 percent increase from Rs. 5,000 crore paid to around 732 distributors as commissions in the previous fiscal, according to the data released by AMFI.

The overall assets under management (AUM) of the mutual fund industry also increased by around 26 percent to Rs 23 lakh crore as of March 31, 2018, from Rs 18.3 lakh crore, a year ago, the data said.

Interestingly, the commissions earned by the mutual distributors grew faster than the overall mutual fund AUM, it said.

Surat-based NJ India Invest topped the chart with Rs 786.77 crore earned as commission during 2017-18, up 78 percent from a year before. It is followed by HDFC Bank which collected Rs 641.39 crore as commission.

The state lender, State Bank of India (SBI), came third by earning Rs 558 crore during 2017-18.

According to the data, SBI saw the highest growth in the commission income with a whopping 212 percent increase from Rs 179 crore during 2016-17.

Banks have always dominated the list of top MF distributors by commissions earned. They are the major sellers of mutual funds, most of them receive a significant amount of commission selling MF products of their subsidiary AMCs.

First Published:Jul 13, 2018 1:51 PM IST