Non-associate distributors like IFAs and NDs manage 72% of the MF industry’s equity-oriented assets, shows AMFI data. Of the total equity AUM of Rs.10.90 lakh crore, non-associate distributors manage Rs.7.90 lakh crore as on June 2019.
Roughly put, associate distributors are those distributors who share parentage with the AMCs. For instance, HDFC Bank/SBI/ICICI Bank/Axis Bank are considered as associate distributors of HDFC AMC/SBI MF/ICICI Pru AMC/Axis MF respectively; similarly, Aditya Birla Capital is an associate distributor of Aditya Birla Sun Life Mutual Fund.
Equity-oriented funds include pure equity schemes, ELSS and balanced schemes.
Meanwhile, AMCs dependency on their associate distributors seems to have reduced. AMFI data shows that associate distributors account for 11% of the equity AUM.
Interestingly, direct plan in equity AUM is more than the contribution from associate distributors. While 17% or Rs.1.80 lakh crore came from direct plans, associate distributors manage around 11% or Rs.1.20 lakh crore.
|
Distribution channel |
AUM of equity-oriented schemes (in Rs. crore) |
AUM of equity-oriented schemes (in %) |
|
Direct |
1,81,557.57 |
17% |
|
Associate distributor |
1,24,637.57 |
11% |
|
Non associate distributor |
7,85,986.08 |
72% |
|
Total |
10,92,181.22 |
100% |
T30 vs B30
Most of the non-associate distributors’ assets came from T30 cities. Of the Rs.7.90 lakh crore equity AUM that non-associate distributors manage, nearly Rs.5.97 lakh crore (76%) came from the T30 cities. The remaining Rs.1.90 lakh crore (24%) came from B30 cities.
Of the Rs.1.20 lakh crore managed by associate distributors, Rs.80,448 crore (65%) came from T30 cities while Rs.44,190 crore (35%) came from B30 cities.
In case of assets accumulated from direct schemes, the percentage of concentration in T30 cities was the highest. Of the total Rs.1.80 lakh crore, 85% or Rs.1.5 lakh crore came from T30 cities while the rest 15% or Rs.26,750 crore came from B30 cities.
Over 76% or 8.32 lakh crore of the MF industry’s Rs.10.92 lakh crore equity AUM came from T30 cities. The rest, which is nearly 24% or Rs.2.60 lakh crore came from B30 cities.
|
Distribution channel |
Equity AUM from T30 cities (in Rs. crore) |
Equity AUM from B30 cities (in Rs. crore) |
Total (in Rs. crore) |
T30 share (%) |
B30 share (%) |
|
Direct |
1,54,807.46 |
26,750.11 |
1,81,557.57 |
85% |
15% |
|
Associate distributor |
80,447.95 |
44,189.62 |
1,24,637.57 |
65% |
35% |
|
Non associate distributor |
5,97,148.89 |
1,88,837.19 |
7,85,986.08 |
76% |
24% |
|
Total |
8,32,404.30 |
2,59,776.92 |
10,92,181.22 |
76% |
24% |
