Many AMCs are roping in new cadre of distributors to expand their distribution force.
The recent reduction in the ARN fee, opening up of new channel of intermediaries called new cadre of distributors and zero fees for first time ARN registration seem to be delivering good results. “We are seeing a decent increase in ARN registrations. At least 1000 new distributors are getting registered every month,” said V Ramesh, Deputy CEO, AMFI.
Many large AMCs are roping in an army of new cadre of distributors. In an attempt to attract more distributors and expand the distribution force in the nook and corner of the country, SEBI allowed retired bank officers, retired teachers, and postal agents to sell a limited range of schemes. These new cadre of distributors are also likely to get higher commissions if they are operating in the B-15 cities/towns. Since AMCs are allowed to charge a higher TER if they achieve their targeted B-15 inflows, they are putting greater effort to capitalize on the opportunity.
UTI Mutual Fund has already roped in more than 500 new cadre of distributors.
DP Singh, CMO, SBI MF had earlier told Cafemutual that the fund house will provide two day training at around 30 centres located in B-15 cities to train their new cadre of distributors and in the second phase of this program, SBI will impart training in 100 centres across the country. Reliance Mutual Fund too is looking to add close to 1000 new distributors.
LIC Nomura is planning to enroll distributors from Nagpur and Nashik to begin with. It is targeting to add at least 100 distributors from each city/town.
While many large AMCs are looking to enroll new distributors mid-sized players are looking at enrolling area representatives and trying to strengthen their existing network in B-15 cities.
