Does your broker suggest funds from a group entity?

Most banks get a large chunk of their brokerage income from fund houses run by their own group. Investors should be careful of brokers who go by a fund’s parentage instead of potential when they suggest schemes.

COMMISSION INCOME OF THE 10 LARGEST MUTUAL FUND DISTRIBUTORS IN INDIA

Distributor: NJ IndiaInvest Rs 326 crore
Biggest Contributor: Reliance MF 22%

Distributor: HDFC Bank Rs 261 crore
Biggest Contributor: HDFC MF 35%

Distributor: ICICI Bank Rs 170 crore
Biggest Contributor: ICICI MF 61%

Distributor: Kotak Bank Rs 166 crore
Biggest Contributor: Kotak MF 28%

Distributor: Darshan Services Rs 160 crore
Biggest Contributor: Birla MF 21%
Distributor: IIFL Wealth Management Rs 144 crore
Biggest Contributor: HDFC MF 17%

Distributor: Citibank NA Rs 141 crore Biggest Contributor: ICICI MF 20%

Distributor: Axis Bank Rs 140 crore
Biggest Contributor: Axis MF 66%

Distributor: ICICI Securities Rs 111 crore
Biggest Contributor: HDFC MF 16%

Distributor: SPA Capital Rs 106 crore
Biggest Contributor: Birla MF 20%

Data source: Outlook Asia. The inference derived is that of ET Wealth.