In an effort to increase the number of individual distributors and increase financial inclusion in the country, AMFI has introduced an internship plan to bring in new individual MFDs.
Under this initiative, fund houses can have exclusive partnership with an individual MFD and pay them a monthly stipend of up to Rs.15,000 for the first 12 months. During this period, fund houses will be responsible for training and development of an individual MFD.
AMFI said that the internship plan is introduced under a regulatory sandbox project approved by the SEBI to increase the number of individual MFDs in the country.
Sharing the rationale, AMFI said that the initiative aims to target fresh graduates, educated but unemployed individuals, especially those who may have lost their jobs and earnings due to the Covid pandemic, retirees, women and housewives who may have taken a mid-career break to take care of their young ones and all of those now desirous of starting their own venture as self-employed entrepreneurs.
AMFI clarified, “Individuals aspiring to become MFDs will have an exclusive empanelment and tie-up with a specific ‘sponsor’ AMC for a period of 12 months. During this period, the apprentice MFD will be supported by the sponsoring AMC towards getting the requisite NISM certification, acquiring ARN, operational set-up, training on operational aspects and client acquisition along with a stipulated monthly stipend of up to Rs.15,000 for a maximum of 12 months. The apprentice MFD will be empanelled with only one sponsor AMC during the period of apprenticeship but will be free to empanel with more AMCs after the completion of this initial period.”
A Balasubramanian, Chairman, AMFI said, “When we released the AMFI BCG ‘Unlocking the ₹100 Trillion Opportunity’ whitepaper, we had envisioned growing the mutual fund distributor base from around 1 lakh distributors to 5 lakh distributors. Thanks to the SEBI Regulatory Sandbox, we are looking to add around 5,000 apprentice MFDs this year who will be trained and supported by the industry till they are ready to be on their own. This initiative will work towards the Prime Ministers vision of ‘Atmanirbhar Bharat’ by creating self-motivated and self-reliant entrepreneurs across the country.”
Vishal Kapoor, Chairman of AMFI’s Standing Committee on Certified Distributors and a member of the AMFI Board, who spearheaded this project at AMFI said, “This is a great opportunity for individuals who wish to start their own venture as an entrepreneur and participate in the steadily growing world of mutual funds, but need initial hand-holding to build sustainable scale and stimulate financial inclusion”.
NS Venkatesh, Chief Executive, AMFI said, ““This initiative of apprentice MFD aims to ramp up the distribution footprint thereby widening the investor base for the mutual fund industry across the country. In addition, this program aims to create self-reliant entrepreneurs that will aid the larger objective of financial inclusion.”
