Giving a positive outlook on the Indian financial distribution industry, Financial Intermediaries Association of India (FIAI), an association of national distributors, has estimated that the financial distribution industry will grow by 10-25% in 2017.
In a survey called ‘Gazing the Crystal Ball: Year 2017’, the association found that 81% of respondents believe that the financial distribution industry will grow by 10-25% from the current levels. Reflecting the positive sentiment among distributors, another 15% expect that it could grow over 25% in 2017, said FIAI.
The association expects that the increase in SIP accounts and supportive equity markets will drive this growth in 2017.
Predictably, majority of the respondents believe that the biggest challenge for the distribution industry in 2017 would be changing regulations.
Further, over 95% of industry people believe that investors were happy with services of their distributors. However, IFAs should consider improving quality of advice, giving prompt services and disclosing conflict of interests to grow further, advices the report.
Among asset classes, a bulk of respondents or 83% of distributors believe that equity as an asset class will see maximum growth in asset size this year.
The association has also estimated that Indian mutual fund industry will grow to Rs.18 lakh crore by the end of 2017. In fact, 39% of respondent believe that the AUM could even exceed Rs.20 lakh by December 2017.
As on December 2016, the assets managed by the Indian mutual industry have grown to Rs.17.06 lakh crore.
