Set Up an MFD Practice, End to End
Build hard for 5 years — MF trail + other-segment income vs growing opex, your breakeven, and the income that keeps coming after you slow down
The Plan
Full-effort years — new SIP + lumpsum + other-segment selling
How far to project — the book keeps paying after building stops
MF Business (while building)
NEW monthly SIPs you register each month — they stack up and keep running even after you stop selling
Trail Rate Glide
Expected trail rate per 5-year block
Other Segments & Opex
Insurance and allied distribution income in the first year
Renewals keep paying — what share of your last active-year other income continues
Office, staff, software, travel — everything it costs to run
Your call — most practices assume 5–10% per year
A servicing-only practice needs a smaller office — what share of opex continues
First year income covers opex
Trail + other segments, last building year
On ₹28.70 Cr placed
Long after active building ended
Income vs Opex — the Whole Journey
Trail + other segments stacked, opex line growing at 7% — building ends at year 5
Year-by-Year Business Plan
The complete financial plan — income, opex and net, building phase and harvest phase
| Year | Phase | AUM | MF Trail | Other Seg. | Opex | Net | Cumulative |
|---|---|---|---|---|---|---|---|
| Yr 1 | Building | ₹1.51 Cr | ₹66,537 | ₹5.00 L | ₹3.00 L | ₹2.67 L | ₹2.67 L |
| Yr 2 | Building | ₹5.51 Cr | ₹3.22 L | ₹5.50 L | ₹3.21 L | ₹5.51 L | ₹8.17 L |
| Yr 3 | Building | ₹12.33 Cr | ₹8.17 L | ₹6.05 L | ₹3.43 L | ₹10.78 L | ₹18.96 L |
| Yr 4 | Building | ₹22.32 Cr | ₹15.82 L | ₹6.66 L | ₹3.68 L | ₹18.80 L | ₹37.76 L |
| Yr 5 | Building | ₹35.88 Cr | ₹26.52 L | ₹7.32 L | ₹3.93 L | ₹29.91 L | ₹67.67 L |
| Yr 6 | Harvest | ₹46.76 Cr | ₹33.48 L | ₹2.20 L | ₹1.68 L | ₹34.00 L | ₹1.02 Cr |
| Yr 7 | Harvest | ₹56.76 Cr | ₹41.80 L | ₹2.20 L | ₹1.80 L | ₹42.19 L | ₹1.44 Cr |
| Yr 8 | Harvest | ₹65.97 Cr | ₹49.45 L | ₹2.20 L | ₹1.93 L | ₹49.72 L | ₹1.94 Cr |
| Yr 9 | Harvest | ₹74.47 Cr | ₹56.50 L | ₹2.20 L | ₹2.06 L | ₹56.64 L | ₹2.50 Cr |
| Yr 10 | Harvest | ₹82.33 Cr | ₹63.02 L | ₹2.20 L | ₹2.21 L | ₹63.01 L | ₹3.13 Cr |
| Yr 11 | Harvest | ₹89.62 Cr | ₹60.42 L | ₹2.20 L | ₹2.36 L | ₹60.26 L | ₹3.73 Cr |
| Yr 12 | Harvest | ₹96.40 Cr | ₹65.33 L | ₹2.20 L | ₹2.53 L | ₹65.00 L | ₹4.38 Cr |
| Yr 13 | Harvest | ₹102.73 Cr | ₹69.90 L | ₹2.20 L | ₹2.70 L | ₹69.40 L | ₹5.08 Cr |
| Yr 14 | Harvest | ₹108.65 Cr | ₹74.17 L | ₹2.20 L | ₹2.89 L | ₹73.48 L | ₹5.81 Cr |
| Yr 15 | Harvest | ₹114.20 Cr | ₹78.18 L | ₹2.20 L | ₹3.09 L | ₹77.28 L | ₹6.59 Cr |
| Yr 16 | Harvest | ₹119.43 Cr | ₹70.24 L | ₹2.20 L | ₹3.31 L | ₹69.12 L | ₹7.28 Cr |
| Yr 17 | Harvest | ₹124.38 Cr | ₹73.28 L | ₹2.20 L | ₹3.54 L | ₹71.93 L | ₹8.00 Cr |
| Yr 18 | Harvest | ₹129.07 Cr | ₹76.16 L | ₹2.20 L | ₹3.79 L | ₹74.57 L | ₹8.74 Cr |
| Yr 19 | Harvest | ₹133.53 Cr | ₹78.90 L | ₹2.20 L | ₹4.06 L | ₹77.04 L | ₹9.51 Cr |
| Yr 20 | Harvest | ₹137.79 Cr | ₹81.51 L | ₹2.20 L | ₹4.34 L | ₹79.37 L | ₹10.31 Cr |
The setup playbook this models: in the early years, other-segment income (insurance and allied distribution) pays the bills while the MF book is still small — trail is tiny at first because it is a percentage of assets, not of sales. Somewhere in the middle the compounding book takes over, and by the harvest years the practice pays you whether you show up or not. The two numbers that decide everything: how much fresh SIP book you add per month, and how well you retain it.
Trail commission rates are indicative and vary by AMC, scheme, and plan type. Actual trail income depends on the specific schemes distributed and is subject to change by AMCs.
Other-segment income rates depend on the products distributed and applicable licences (IRDAI registration for insurance). All figures here are your own assumptions.
This tool is for internal business planning purposes only. Not for public distribution or client-facing use.
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully. Past performance does not guarantee future returns.