Prudent Corporate becomes second-largest non-banking MF Distributor

6 Sep 2022 , 01:58 PM

According to the most recent data from the Association of Mutual Funds in India (AMFI), Prudent Corporate Advisory Services Limited (Prudent) has become the 5th largest Mutual Fund Distributor in terms of commissions collected during FY2022. It has also surpassed established legacy players to become the second largest non-banking mutual fund distributor (based on commissions collected).

Following this development, Prudent Corporate Advisory was trading 7.31% higher at Rs664.95 per piece, against previous close of Rs619.65 on NSE. So far in today’s trade, the counter hit a fresh 52-week high of Rs675.

Prudent’s AUM rose at a CAGR of 41% from FY2017 to FY22, compared to the industry’s CAGR of 14.5% over the same time. Commissions climbed at the quickest rate, outpacing the top four players, driven by phenomenal growth in AUM.

Commission income, which stood at Rs440.9 crore at the end of FY22, increased at a 35% CAGR during the FY2017-22 period, compared to an industry growth rate of 16%.

Prudent’s market share of commission income in the industry has increased from 1.98% in FY2017 to 4.23% in FY2022.

The in-organic prospects, along with a strong cult of systematic mutual fund investment, provide the company with ample growth potential to attain Rs1,000,000 crore AUM in the next four years, stated Sanjay Shah, Chairman, and Managing Director.

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