The mutual fund industry has added more than 14,450 individual distributors in the calendar year 2017, shows the latest AMFI data. The total number of individual ARN holders was 82,476 in December 2017.
Experts say that the growing popularity of mutual funds has attracted many individuals to take up mutual fund distribution as a profession.
Sundeep Sikka, CEO, Reliance Mutual Fund, attributed this growth to increasing popularity of mutual funds post demonetisation. “After demonetisation, we have seen a shift from physical assets to financial assets. Many new investors are opting for the mutual fund route as a preferred way to invest. These investors need handholding by distributors. In addition, many fund houses have been encouraging people to take up mutual fund distribution as a full-time profession through branch offices,” Sundeep said.
Kailash Kulkarni, CEO, L&T Mutual Fund, agrees. He feels that rising acceptability of mutual funds among retail investors has helped the industry expand its footprint. “Since mutual fund has now become a pull product, many individuals are opting for mutual fund distribution,” Kailash said.
Experts also attribute this to the ease of setting up of distribution business. “Large fund houses are helping individuals set up their distribution business by handholding them through requisite examinations and trainings,” said Debashish Mohanty, Country Head, Retail Business, UTI Mutual Fund.
He also believes that many insurance agents are becoming mutual fund distributors to expand their offerings. “Many insurance agents have become distributors after witnessing the benefits of trail commission and growing popularity of mutual funds among retail investors,” Debashish said.
The AMFI data states that the number of new distributors entering this profession has been continuously rising. In December, more than 2,000 new distributors registered or renewed their ARN number with AMFI, compared to 928 new individual distributors as on April.
Overall, the industry has 2.27 lakh ARN and EUIN holders as on December 2017. All these distributors and employees are KYD compliant ARN holders.
