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The MFD count in B-30 locations will soon be larger than that of T-30 cities. As of May-end 2022, there were 49,000 MFDs based in B-30 areas compared to 51,600 MFDs in T-30 cities.
The gap between the ARN counts in the two geographical divisions has contracted a lot in the last few years, given the fact that MFD count has risen at a higher pace in B-30 compared to the top cities.
At the end of December 2019, the ARN counts in T-30 and B-30 location stood at 47,200 and 40,000, respectively. By May-end 2022, the T-30 ARN count had risen 9% to 51,600 while B-30 ARNs grew 23% to 49,000.
As a result, B-30 ARNs were 49% of the total ARN count in May 2022 as against 46% in December 2019, shows an analysis of AMFI data.
Sales heads of mutual funds say the rise in MFD numbers in smaller cities and villages shows that people are seeing a bright future for mutual funds.
Awareness of mutual funds as an investment product has gone up, thanks to AMFI's Investor Awareness Programs (IAPs) and 'Mutual Fund Sahi Hai' initiative. With the investor base going up, people are seeing value in getting into distribution business," said Manish Mehta, Joint President & National Head Sales, Marketing & Digital Business at Kotak Mahindra AMC.
"Also, B-30 cities now have many successful MFDs who act as an inspiration for others," he added.
