- Prudent Corporate Advisors' steady ascent in the mutual-fund-distribution industry is now threatening bigger bank and non-bank distributors’ hold
- The company has armed itself with a robust distribution network, an all-in-one integrated tech platform, and a strategy to diversify
- Threats such as commission cuts from fund houses, rising interest in direct plans, and regulatory changes loom on the horizon
- An increasing exposure to insurance and other non-mutual fund products could help companies like Prudent to partially, if not completely, hedge their bets
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Prudent Corporate Advisors is not quite at the top of India’s mutual-fund-distribution pyramid. But it is close. Close enough that, for the first time, the club of bank-led giants might have to make room.
The Ahmedabad-based company has held onto the fourth place in both commission income and average assets under management (AAUM) for two years in a row—FY24 and FY25, according to data released by the Association of Mutual Funds in India in late August. This time around, though, it’s nipping at No. 3 incumbent HDFC Bank’s heels.
State Bank of India is still ahead, as is NJ IndiaInvest among the independent, non-bank distributors. (among non-bank distributors, Prudent ranks second, next only to NJ). For context, it ranked 14th in commission income a decade ago.
Another milestone for the company: in August, it
In some ways, the company is surfing a larger wave: Indian households’ increasing financialisation of their savings. Equity mutual funds, in particular, have
It may seem like a great time to be a mutual-fund distributor, but it’s not all smooth sailing.
Many retail investors are moving from distributor-facilitated regular plans to
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