The latest MFDEx data, which covers 96% of the industry AUM, shows that IFAs have created 1.93 lakh new SIP accounts as on December 2017.
National distributors added over 2.58 lakh SIP accounts during that period. Some large national distributors such as NJ India, FundsIndia and Prudent collaborate with individual distributors under the sub-broking model.
Interestingly, IFAs have added more SIP accounts in B15 cities than T15 ones. IFAs have created 1.02 lakh new SIP folios in B15 cities compared to 91,159 new SIP folios in T15 cities, the data showed. On the other hand, national distributors created 1.59 lakh SIP folios in T15 compared to 99,929 SIP accounts in B15 cities.
Experts attribute this to the higher presence of IFAs in B15 cities. They also said that individuals in B15 cities are comfortable opening an SIP account.
G. Pradeepkumar, CEO, Union Mutual Fund, attributes this to the strong network of IFAs. “If you look at the geographical distribution of IFAs, most of them are from B15 cities. Also, many IFAs encourage retail investors to set aside a small corpus every month from their earnings to achieve their financial goals. Retail investors are also comfortable with SIPs in mutual funds to create wealth,” Pradeepkumar said.
Seconding Pradeepkumar, Swarup Mohanty, CEO, Mirae Asset Mutual Fund, says that B15 investors are slowly shifting to mutual funds. “B15 investors are more likely to open an SIP account, but they need handholding by distributors,” he added.
Banks accounted for 19% of new SIP registrations with 2.06 lakh accounts. While private banks created 1.15 lakh SIP accounts, their PSU counterparts registered close to 90,657 new SIP accounts in December 2017, the MFDEx data showed.
The data also takes into account distribution channels like robo advisory and overseas distributors in the ‘others’ category. This category created 2.45 lakh new SIP folios, or 23% share, of the new SIP folios.
Overall, the industry has created 82 lakh new SIPs in the first nine months of FY 2017-18, i.e. between April 2017 and December 2017.
New SIP accounts created by distributors as on December 2017
|
|
Direct |
IFA |
National Distributor |
PSU Banks |
Other Banks |
Regional Distributor |
Others |
Grand Total |
|
T15 |
79,167 |
91,159 |
158,863 |
53358 |
39,050 |
22,684 |
124,548 |
568,829 |
|
B15 |
54,530 |
101,846 |
99,929 |
37,299 |
76,547 |
8,642 |
121,115 |
499,908 |
|
Total |
133,697 |
193,005 |
258,792 |
90,657 |
115,597 |
31,326 |
245,663 |
1,068,737 |
Source: MFDEx Data
