A small group of large mutual fund distributors in India captured 77% of the ₹27,335 crore commissions in 2024-25, highlighting ongoing market concentration amid expanding but uneven investor outreach.
India’s mutual fund distribution business generated ₹27,335 crore in commissions in 2024-25, but the money was spread very unevenly, with a relatively small group of large distributors taking most of the pool, according to Business Today and related industry reporting. The concentration highlights how sharply earnings in the sector depend on scale, client reach and product placement, rather than just the number of firms in the market.
Business Standard said about 3,150 leading distributors collected ₹21,107 crore during the year, with major names such as State Bank of India, NJ IndiaInvest, Prudent Corporate Advisory Services, HDFC Bank and ICICI Bank together earning ₹6,775 crore. That cohort accounted for roughly 77% of total payouts, underscoring how heavily commissions are skewed towards the top of the market.
The largest reported slice went to banks and bank-linked brokers, which received ₹6,330 crore across just 50 institutions, according to figures published in the June edition of 1 Finance magazine cited by Business Today. Wealth managers and corporate distributors formed the biggest disclosed group, with 1,591 firms sharing ₹11,629 crore, while fintech platforms and individual distributors also posted meaningful gains.
At the other end of the market, more than 2,03,000 small or non-disclosed distributors were estimated to have shared about ₹6,229 crore. Their average annual commission income worked out at roughly ₹3.07 lakh each, a reminder that the business remains highly uneven despite the broadening of India’s mutual fund investor base.
Analysts say the balance of power is shifting further away from banks. Kotak Institutional Equities, as cited by Business Standard, found that non-bank distributors accounted for 75% of total commission payouts in 2024-25, up from 65% in 2018. The Economic Times reported that the surge in commissions was helped by strong market conditions and record new fund offerings, while Moneycontrol said the top 10 distributors lifted their commission earnings by 39% year on year, with NJ Indiainvest and Prudent Corporate Advisory Services among the standouts.
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