There are lot of opportunities for MFDs in the financial distribution space as India has low per capita distributor to service investors.
AMFI’s latest data shows that the MF industry has 1.18 lakh individual MFDs as on December 2021. Considering 1.35 billion population, a rough calculation shows that India has one MFD for every 11,400 people.
Overall, the MF industry has 1.26 lakh distributors including corporates. Of the total distributors, 87% or 1.09 lakh distributors are individuals, 8850 are senior citizens and 7700 are corporates.
Of the total MFDs, almost half are from beyond-30 (B30) locations. Data shows that 47% of ARN holders (58,900) reside in B30 areas as of December 2021. The rest 53% or 67,100 MFDs are based in top 30 locations.
While the aggregate number of folios is over 12 crore, the number of MF distributors currently registered with AMFI is just over 1.26 lakh and this number would be far lesser, if we factor in inactive distributors. An industry data shows that 35% of the total individual MFDs manage assets of over Rs.1 crore as on March 2021. These distributors can be considered active.
The total number of foot soldiers in the MF distribution is 2.67 lakh including employees of corporates and distributors.
This shows the immense opportunities for the MFDs in the financial distribution space in India.
