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Ch.6 · Distributor Commission Structure · medium

Which type of distributor typically has the largest share of mutual fund AUM in India?

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EXPLANATION

Banks are the largest distributors of mutual funds by AUM in India, leveraging their existing customer relationships and branch networks. Large banks like SBI, HDFC, and ICICI distribute significant AUM. However, IFAs are the largest in terms of number of distributors.

A.Individual Financial Advisors (IFAs)

B.Banks [✓ Correct]

C.Online fintech platforms

D.National distributors

EXPLANATION

Banks are the largest distributors of mutual funds by AUM in India, leveraging their existing customer relationships and branch networks. Large banks like SBI, HDFC, and ICICI distribute significant AUM. However, IFAs are the largest in terms of number of distributors.

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