Recent MFDEx data shows that IFAs and national distributors (NDs) have added 33.83 lakh folios in the first nine months of this financial year. This means that they have contributed 35% of the industry’s 97.08 lakh folios.
Amongst the two, IFAs have added close to 15 lakh folios. Majority of the folios have come from T30 locations (9.4 lakh).
Of the 18 lakh folios added by NDs, 13.70 lakh come from T30 cities. Many IFAs empanel with NDs under the sub-broking model to simplify their business operations.
MFDEx covers 96% of the industry’s data.
Banks account for 19% of the new folio registrations in April – December 2019. PSU banks have added 7.43 lakh folios while private banks have added 10.53 lakh folios during the period.
Direct channel too has contributed majorly to new folio creation adding 21.82 lakh folios. It is likely that majority of these folios have been activated by RIAs. A December end CAMS report showed that RIAs accounted for over 60% of new folio creation under direct plans. The report covered only CAMS serviced fund houses (67% of the industry).
Online distributors represented by the others category too have added 21.22 lakh folios during the period. The entry of online players have helped the growth of folios in this space.
New folio creation
Distributor Category |
T30 |
B30 |
Total |
Direct |
14,04,660 |
7,77,781 |
21,82,441 |
IFA |
9,40,676 |
5,54,748 |
14,95,424 |
National Distributors |
13,70,148 |
5,18,337 |
18,88,485 |
PSU Banks |
3,81,989 |
3,61,807 |
7,43,796 |
Other Banks |
7,34,296 |
3,19,177 |
10,53,473 |
Regional Distributors |
1,72,951 |
48,922 |
2,21,873 |
Others |
13,28,772 |
7,94,003 |
21,22,775 |
Total |
63,33,492 |
33,74,775 |
97,08,267 |
Source: CAMS MF Trends report