Contrary to the widespread belief that IFAs and NDs do not focus on debt funds, AMFI data shows that non-associate distributors like IFAs and NDs accounted for 36% of the MF industry’s debt assets. Of the total debt AUM of Rs.13.40 lakh crore, these distributors account for Rs.4.80 lakh crore as on June 2019.
Further, the data shows that AMCs’ associate distributors only contribute a fraction of assets to the debt kitty of the fund house. AMFI data shows that associate distributors account for 6% of the debt AUM. This means, of the MF industry’s total debt AUM of Rs.13.40 lakh crore, associate distributors account for Rs.85, 412 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.
Unsurprisingly, contribution to debt funds is the highest through direct plans. This is because a sizable part of debt funds AUM comes from corporates who prefer to invest directly. Of the total debt AUM of Rs.13.4 lakh crore as on June 2019, a whopping 58% or Rs.7.70 lakh crore AUM came from direct plans.
|
Distribution channel |
AUM of debt oriented schemes as on June 2019 |
AUM share (%) |
|
Direct |
7,70,617.12 |
58% |
|
Associate distributor |
85,412.57 |
6% |
|
Non associate distributor |
4,83,882.65 |
36.11% |
|
Total |
13,39,912.34 |
100% |
T30 vs B30
While 90% of the total debt AUM come from T30 cities, the difference between debt AUM coming from T30 and B30 cities is the highest in case of direct plans. Of the Rs.7.7 lakh crore coming via direct plans, Rs.7.20 crore (94%) came from T30 cities, while Rs.48,183 crore (6%) came from B30 cities.
Of the Rs.4.80 lakh crore debt AUM managed by non-associate distributors, Rs.4.3 lakh crore (88%) came from T30 cities while Rs.58,679 crore (12%) came from B30 cities.
While associate distributors account for debt AUM of Rs.53671 crore or 63% from T30 cities, 37% of their debt AUM or Rs.31,740 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 |
7,22,434.08 |
48,183.04 |
7,70,617.12 |
94% |
6% |
|
Associate distributor |
53,671.98 |
31,740.59 |
85,412.57 |
63% |
37% |
|
Non associate distributor |
4,25,203.00 |
58,679.65 |
4,83,882.65 |
88% |
12% |
|
Total |
12,01,309.06 |
1,38,603.28 |
13,39,912.34 |
90% |
10% |
