It is rightly said that the distributors are the backbone of the mutual fund industry. This is evident from the fact that distributors serviced nearly 86% of the individual investors AUM. This indicates thatmutual fund distributors broughtclose to Rs.9 lakh crore of individual investors AUM, which includes retail investors and HNIs.
While T15 distributors brought in 62% of the total individual assets, B15 distributors brought in 24%. This means, of Rs. 100 of AUM held by individual investors, T15 distributors contribute Rs.62,B15 distributors account for Rs.24 with the remaining Rs.14 coming through direct plans.
Individual Investors – scheme level composition
Equity: While T15 distributors brought in 62% of total equity AUM held by individual investors, B15 distributors account for 28% of it. AMFI data shows that 10% of such assets came from direct investments as on September 2017.
Debt and liquid funds: Similar to equity funds, a large majority (63%) of individual assets in debt funds from T15 locations and 19% of individual assets from B15 locations came from distributors. Debt funds received 18% of their AUM though the direct route.
Liquid funds also received their fair share of inflows from distributors. Around 55% of individual assets in liquid funds in T15 locations came from distributors while 33% of it came from direct investors.
ETFs &FoFs: ETFs and fund of funds investing overseas are mostly popular among direct investors. AMFI data shows that 58% of individual assets from T15 locations in both these categories came from direct investors.
This category ispopular among direct investors in B15 locations too. Around 19% of individual assets in B15 locations came from direct investors. Only 4% of individual assets in these locations brought in by distributors.
