Mutual funds are the core source of income for distributors with 50% of their income coming from mutual funds, shows a Cafemutual MFD survey.
The survey covered 1256 financial intermediaries including mutual fund distributors and registered investment advisers across 24 cities. While 861 respondents are from top 30 (T30) cities in the country, 395 intermediaries belong to beyond the top 30 cities (B30) cities. These distributors represent a cross-section of the MF industry.
Insurance is next biggest source of income at 30% - life insurance (19%) and health and motor policies (11%). Only 2% of their total income comes from AIF and PMS.
The survey further shows that mutual funds mutual funds are the biggest source of income for 75% of the MFDs. For 12% MFDs, insurance policies is the major source of income.
Another interesting finding is that 76% MFDs distribute insurance policies. Similarly, while 65% MFDs sell health and motor insurance policies, 49% of them offer stock broking services. Just 22% MFDs distribute PMS and AIF.
