Covid-19 to take a toll on bonuses of domestic mutual fund employees

Employees of domestic mutual funds may receive single-digit bonuses despite the industry seeing steady asset growth for the better part of the year.

Some asset managers may skip the payouts altogether as they take cognisance of the impact the Covid-19 pandemic may have on future earnings. Salary cuts may be in the offing as well, if the existing uncertainty prevails, experts said.  

Fund managers’ compensation is largely tied to the assets they manage and scheme performance. In a good year they can hope to take home 50-100 per cent of their annual salaries as bonuses, which are typically paid in April or