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MF News IFAs manage 15% of the industry AUM

IFAs manage 15% of the industry AUM

Of Rs.23 lakh crore, IFAs manage AUA of close to Rs.3.45 lakh crore as on December 2018.
Team Cafemutual Mar 13, 2019

The market share of IFAs in the mutual fund assets is 15%. Of the total Rs.23.39 lakh crore industry AUM as on December 2018, IFAs manage AUM of Rs.3.45 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.95,000 crore in two years. Experts attribute this to the mark-to-market gains and increase in retail inflows.

Currently, the direct plan investors account for 43% or Rs.10 lakh crore of the industry AUM. 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.

The assets of national distributors including those such as NJ, Prudent and Fundsindia that operate under sub-broking model and large distributors such as Bajaj Capital are next in line after IFAs. The assets managed by national distributors stood at Rs. 2.80 lakh crore on December 2018.

Similarly, the assets managed by banks stood at Rs.3.68 lakh crore in June. The private banks managed a higher share—the AUA of private banks was Rs.2.88 lakh crore.

Regional distributors and others (robo advisors and overseas distributors) manage AUM of Rs.58000 crore and Rs.2.88 lakh crore, respectively.

In T30 locations, direct investments share in AUM is 46% 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 30%  followed by direct investments share at 21%. PSU and Other banks hold 13% and 10% share in B30 locations AUM.

 

Distributor

T30

B30

Total

IFA

260439

84649

345088

ND

253348

26864

280212

PSU Bank

43616

36179

79795

Other Bank

258276

29907

288183

Regional distributor

55236

2782

58018

Others

243462

44720

288182

Direct

939328

59749

999077

Grand Total

2053704

284849

2338553

 
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3 Comments
Prashant · 1 week ago
You must be kidding. These datas are just to show that we are not important. Jaago distributors jaago nahi to aap kahin ke nahi rahoge
SURI SEETA RAM · 1 week ago
But, what the AMC Officials tell us in Distributor meetings is totally different. They say that the contribution of Retail Distribution Community is the largest and what the rest of them do is miniscule.
Deepak Kumar · 1 week ago
Please elucidate the share of distributors in equity portion of mutual fund.I cogitate that would be the vast portion.equity schemes are much more significant in mutual fund industry.we must be united if We want to go ahead.ok.
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