The withdrawal of the entry-load, which constituted a good part of the commissions passed on to the distributors, was one of the other factors leading to a sudden change in the distribution space. Generally, it is more expensive for a distributor to reach out to a retail investor than to a corporate investor. While an average retail investor folio has about 35,000 INR of assets, an average corporate investor folio has 59 lakh INR of assets. Hence, a distributor will need to reach around 170 retail investors to get the same AuM as a single corporate folio, which acts as a.
