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Despite the tough competition from direct players, distributors bring 77% of the total SIP collections, shows an analysis of industry data.
They contributed Rs. 33,108 crore to the total SIP amount of Rs. 43,211 crore in April-June 23. Direct plans contributed the remaining 23% or Rs.10,103 crore.
Notably, this proportionate share is the same when compared to the corresponding period of FY 2022-23.
* Figures in crore
Moreover, distributors monthly contribution remained almost the same, indicating their strong foothold in the MF industry. It stayed constant at 77% every month except May 2023 and June 2023, which recorded a marginal decline of 1%.
|
Month |
FY 2023-24 |
FY 2022-23 |
||||||||
|
SIP Contribution |
Regular Plan |
% |
Direct Plan |
% |
SIP Contribution |
Regular Plan |
% |
Direct Plan |
% |
|
|
Apr |
13,728 |
10,581 |
77% |
3,147 |
23% |
11,863 |
9,092 |
77% |
2,771 |
23% |
|
May |
14,749 |
11,281 |
76% |
3,468 |
24% |
12,286 |
9,429 |
77% |
2,857 |
23% |
|
Jun |
14,734 |
11,246 |
76% |
3,488 |
24% |
12,276 |
9,457 |
77% |
2,819 |
23% |
|
Total |
43,211 |
33,108 |
77% |
10,103 |
23% |
36,425 |
27,978 |
77% |
8,447 |
23% |
* Figures in crore
Describing mutual fund distribution as the business of advice, Swarup Mohanty, CEO, Mirae Asset MF said, “Apart from chalking down a financial roadmap for investors, distributors play an important role in behavioural management. These figures are a testament to the fact that investors agree to this and seek comfort in investing through their distributor.”
He further said, “Investors value the handholding of their distributors more than the cost differentials between regular and direct plans.”
Nityanand Prabhu, Executive Director and Business Head, LIC MF, added, "It is increasingly becoming evident that intermediaries play a crucial role in handholding investors and guiding them through the process. The current trend and share of MFDs speaks volumes about their efforts and contribution to the industry.”
Talking about direct plans, Varun Sridhar, CEO, Paytm Money said that the share of direct plans in monthly SIP contribution will also increase in the next 4-5 years. He said, "Given the fact that the emergence of online platforms is relatively new, the share of direct plans in monthly SIP contribution is great."
