Large Mutual Funds Commission Payouts Rise to ₹16,551 Crore in FY26

Large mutual fund houses increased their commission payouts in FY26 even as volatile equity markets affected the growth in assets under management. 

As per the Business Standard reports, the 10 biggest fund houses together paid ₹16,551 crore in commissions during the year. This was 12% higher than the ₹14,797 crore paid in FY25. 

Commission Payouts Continue to Rise 

Mutual fund houses pay distributors for bringing investors and retaining assets in their schemes. The commission paid varies by scheme and can range from a few basis points to more than 1% of the assets. 

The growth in overall payouts came despite a growing preference among some investors for direct plans. 

SBI Mutual Fund Paid ₹3,159 Crore 

SBI Mutual Fund's total commission payout rose 10.7% to ₹3,159 crore in FY26. 

Of this, ₹1,605 crore was paid to State Bank of India, its sponsor bank. The amount paid to SBI was 10.4% higher than the previous year. 

ICICI Prudential and HDFC MF 

ICICI Prudential Mutual Fund paid ₹2,783 crore in total commissions, an increase of 17.5%. Its commission payout to ICICI Bank rose 9.1% to ₹379 crore. 

HDFC Mutual Fund's overall commission payout increased 13.4% to ₹2,471 crore. The amount paid to HDFC Bank rose 5% to ₹310 crore. 

Sponsor Bank Payouts Grow at a Slower Pace 

The disclosures show a difference between overall commission growth and the payouts received by sponsor banks. 

Kotak Mahindra Mutual Fund and Axis Mutual Fund also showed a similar trend, with total commission payouts growing faster than payments to their sponsor banks or largest distributors. 

NJ IndiaInvest Remains a Major Distributor 

NJ IndiaInvest remained the largest distributor for several major fund houses, including Kotak Mutual Fund. 

The distributor earned ₹1,071 crore in gross commissions from five of the 10 largest fund houses where it was the biggest distributor. 

Read More: Parag Parikh Flexi Cap Fund Adds Shares of DLF, Coal India and 12 Other Companies in October 2026! 

Conclusion 

Commission payouts by India's largest mutual fund houses rose in FY26, with the combined figure crossing ₹16,500 crore. The disclosures also show that overall payouts grew faster than commissions paid to several sponsor banks. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.