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MF News IFAs manage 15% of the industry AUM

IFAs manage 15% of the industry AUM

Of Rs.22.74 lakh crore, IFAs manage AUA of close to Rs.3.40 lakh crore as on June 2018.
Nishant Patnaik Aug 7, 2018

The market share of IFAs in the mutual fund assets is 15%. Of the total Rs.22.74 lakh crore industry AUM as on June 2018, IFAs manage AUM of Rs.3.40 lakh crore, shows MFDEx data that constitute 96% of the industry.

The assets under advisory (AUA) of IFAs went up from Rs.2.50 lakh crore in January 2017, indicating a growth of close to 40% in AUA or Rs.90,000 crore in 18 months. Experts attribute this to the mark-to-market gains and increase in retail inflows.

With institutions and corporates favouring direct plans to invest in liquid and debt schemes, direct plans account for a substantial share. These are generally not sticky assets as corporates invest in these funds to park their surplus cash for a short period only. Currently, the direct plan investors account for 42% of the industry AUM.

The assets of national distributors including those such as NJ, Prudent and Fundsindia that operate under sub-broking model are next in line after IFAs. The assets managed by national distributors stood at Rs. 2.96 lakh crore on June 2018.

Similarly, the assets managed by banks stood at Rs.3.66 lakh crore in June. The private banks managed a higher share—the AUA of private banks was Rs.2.93 lakh crore.

Regional distributors and others (robo advisors and overseas distributors) manage AUM of Rs.60,170 crore and Rs.2.70 lakh crore respectively.

In T30 locations, direct investments share in AUM is 39% followed by national distributors, IFAs and other banks by 11% each. Regional distributors and PSU banks hold 3% and 2% share respectively in T30 locations.

Similarly, in B30 cities, IFAs share in AUM is 32% followed by direct investments share at 19%. PSU and Other banks hold 12% and 11% share in B30 locations AUM.

 

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2 Comments
Rakesh · 2 months ago
This analysis can never be correct, unless you give a split of individual to corporate AUM in the starting itself. IFAs will contribute highly in individual AUM accumulation.
Simran · 1 month ago
Can you please provide backup data for this article? Please- very urgent. Thanks.
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