The Indian MF industry continue to grow at a healthy pace, thanks to the spirited performance of India’s small town IFAs. Even as equity markets became volatile in July and August, assets from the country’s smaller towns or B30 cities remained firm.
In August, B30 cities accounted for 15.30% of the total industry AAUM. The number stood at 15.49% in July and at 14.48% in August 2018, shows data compiled by ICRA.
Most of the AUM came from IFAs. Non-associate distributors such as banks and NDs, direct plans and associate distributors contributed 49.11%, 42.91% and 7.97% to the total AAUM, respectively.
As on August this year, AUM of the MF industry stood at Rs.25.47 lakh crore.
IFAs in small cities face challenge at multiple fronts. Recently, a report by published by AMFI and Boston Consulting Group (BCG) noted that there were only 230 IFAs for every 10 lakh households in B15 cities. This is in sharp contrast with the big cities as there were 4300 distributors for every 10 lakh households in T15 cities.
