Based on the latest data published by the Association of Mutual Funds in India (AMFI), Prudent Corporate Advisory Services Limited (Prudent) announces that it has become the 5th largest Mutual Fund Distributor based on commissions earned during FY2022. It is also now the 2nd largest non-banking mutual fund distributor (based on commissions earned), overtaking established legacy players.
Prudent's AUM grew at 41% CAGR in the FY2017-22 period versus the industry CAGR of 14.5% for the same period. Backed by a stupendous growth in AUM, commissions grew at the fastest pace, pipping the growth rate of the top 4 players. Commission income at ₹440.9 crore by the end of FY022, has increased by 35% CAGR during FY2017-22 period versus an industry growth rate of 16%. Prudent's market share of the industry's commission income has increased from 1.98% in FY2017 to 4.23% in FY2022.
Commenting on the results, Mr Sanjay Shah, Chairman and Managing Director, said, "The improvement in our overall ranking is testimony to our agility in our abilities and offerings. We started our journey in 2000, and within two decades, we are part of India's elite top 5 peer group. This is a remarkable feat, given how fiercely competitive the Industry is, and is the ultimate validation of our business model over the years. Our whole team, including our MFD partners, have been the driving force behind this meteoric growth trajectory. Currently, there is a significant under-penetration of MFDs within the country. As on 31 March 2022, while there are almost 25 lakh insurance agents in the country, the count of AMFI Registration Number (ARN) holders is just 1.16 lakh. Consequently, as more MFDs join the industry, we expect incremental benefits to accrue to us & we are extremely optimistic about the future of our business. The in-organic opportunities, coupled with a strong cult towards systematic investment into mutual funds, give us good growth leeway to reach the Rs 1,00,000 crore AUM mark in the next four years. We believe our framework, approach and strategy will create outstanding value for all our stakeholders in coming years."