Table of Contents
- 1 What is the earning of mutual fund distributor?
- 2 How much does a distributor earn in India?
- 3 How much do distributors make?
- 4 Do mutual funds pay brokers?
- 5 Who can sell mutual funds in India?
- 6 How do mutual fund distributors get paid?
- 7 How much Commission do distributors earn in India?
- 8 How much can a mutual fund distributor earn from SEBI?
What is the earning of mutual fund distributor?
According to data from AMFI, MF distributors received Rs 6,617 crore in 2020-2021, which was just 7.6 percent higher than the previous financial year. In contrast, the MF industry’s asset size grew by 41 percent to Rs 31.42 trillion in 2020-2021.
How much does a distributor earn in India?
Of the 46,285 active distributors, 2,865 distributors earn gross commission of over Rs. 20 lakh in a year….6\% distributors earn more than Rs. 20 lakh annually.
| Earning slab per annum | No. of distributors | \% to total |
|---|---|---|
| Between Rs. 1 lakh and Rs.10lakh | 15977 | 35 |
| Between Rs.25,000 and Rs.1 lakh | 9642 | 21 |
| Less than Rs.25000 | 14960 | 32 |
| Total | 46285 | 100 |
How much do mutual fund advisors earn?
Mutual Fund Advisor salary in India ranges between ₹ 1.2 Lakhs to ₹ 5.2 Lakhs with an average annual salary of ₹ 2.5 Lakhs. Salary estimates are based on 163 salaries received from Mutual Fund Advisors.
How much do distributors make?
The national average salary for a Distributor is ₹2,68,190 in India.
Do mutual funds pay brokers?
Under current regulatory rules, a mutual fund can pay a broker up to 0.25 percent of your assets for “servicing” your account. If you have a $30,000 account balance, that’s $75 a year. Account maintenance fee. A broker charges an average of $20 to “maintain” each mutual fund in your account.
Is it profitable to be a distributor?
Like most startups, the average wholesale distributor will need to be in business two to five years to be profitable. There are exceptions, of course. Take, for example, the ambitious entrepreneur who sets up his garage as a warehouse to stock full of small hand tools.
Who can sell mutual funds in India?
Only those whom clear NISM Certification can get one. Also, if you are a senior citizen, passing the CPE (Continuing Professional Education) is mandatory for the same. Without this number, you cannot sell a mutual fund or even recommend one.
How do mutual fund distributors get paid?
In the meanwhile, distributors still continue to be paid upfront fees and trail fees, which now forms one part of distributor’s earnings. The other part, of course, is the fee they charge you—the investor. But about the fees that your agent earns from MFs, wouldn’t you like to know how they earn commissions?
How is commission paid on mutual fund investments in India?
In India, the commission is paid on trail basis on Mutual Funds, which means you will continue to get the commission until an investment is held by the client. The commission is paid on a monthly basis and keeps increasing with an increase in business (asset under management).
How much Commission do distributors earn in India?
Of the 46,285 active distributors, 2,865 distributors earn gross commission of over Rs.20 lakh in a year. Of the 46,285 distributors who get brokerage every year (can be considered as active), 2,865 or 6\% of them earn gross commission of more than Rs.20 lakh annually, shows AMFI data.
How much can a mutual fund distributor earn from SEBI?
Herein total limit is decided by the respect Mutual Fund house but SEBI has defined a CAP of 2.5\% for Mutual Fund house – a fund house generally shares 1 to 1.5\% with their distributors. As some of the responses said, distributors can earn a lot.