IFAs added 7 lakh retail folios between April and June 2017, shows the CAMS report that covers 94% of the industry data. The industry has added 32 lakh folios during the first quarter of FY 2017-18.
While mutual fund distributors have created 7.05 lakh new accounts, national distributors such as NJ India and Prudent who partner with distributors under sub-broking model added over 7.75 lakh folios in April-June 2017. Many IFAs empanel with NDs to make their business operations simple.
The data shows that IFAs account for 22% of new folio accounts whereas NDs contribute 24% to the new folio count.
Similarly, banks account for 22% of new folio registrations with 7 lakh accounts. While private banks have created 4.14 lakh accounts, PSU banks registered close to 2.84 lakh new accounts in April-June 2017.
Interestingly, most of the folios of PSU banks were from b15 cities. These banks have created 1.92 lakh folios compared to 1.56 lakh folios of private banks due to their extensive network in such locations.
In terms of geographical distribution of folios, IFAs have added more new accounts in T15 cities than B15 cities. The CAMS data shows that IFAs have created 3.53 lakh new folios in T15 cities compared to 3.51 lakh folios in B15 cities.
On the other hand, national distributors have created 5.02 lakh folios in T15 compared to 2.72 lakh accounts in B15 cities.
