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MFD Karein Shuru and the new apprentice program seem to have been yielding results for the MF industry.
AMFI data shows that close to 17,000 new individuals enter the MF distribution industry in the first nine of the months the current financial year. The MF industry added 16,813 new MFDs during April-December 2022 as against 14,735 in the corresponding period last financial year.
Experts attribute this to AMFI’s initiatives to encourage more and more people to become MFDs, the MFD Karein Shuru campaign and the apprentice MFD program. While the MFD Karein Shuru is a media campaign that aims to encourage people to become mutual fund distributors, the apprentice program gives an opportunity to fund houses to onboard new distributors by offering monthly stipend of up to Rs.15,000.
Further, a month-wise analysis shows that, except for August 2022 and October 2022, the MF industry witnessed a growth in ARN registrations every month.
May 2022 recorded the highest growth of 102% as the ARN registrations increased from 815 in May 2021 to 1,648. Notably, this is also the highest absolute growth (833) in any month of the current financial year. However, in terms of the number of registrations, December 2022 added the highest number of individual MFDs i.e. 2,351.
Overall, 38,048 distributors joined the MF industry during April-December 2022. This comprised individuals (16,813), overseas distributors (10), corporates (795), corporate employees (20,407) and individual MFD employees (23).
ARN Renewal
45,758 distributors renewed their ARN during the first nine months of FY 22-23, as against 38,610 the last financial year.
ARN renewals in FY 22-23 comprised 23,560 individuals, 1 new cadre, 1,283 corporates, 20,896 corporate employees and 18 individual MFD employees.
