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The first quarter of FY 2023-24 saw a reduction in new individual ARN registration, shows an analysis of industry data available with Cafemutual. The total number of individual ARNs declined by 14% from 5,173 in April-June 2022 to 4,430 in April-June 2023.
|
Month |
2023 |
2022 |
|
Apr |
1,541 |
1,722 |
|
May |
1,505 |
1,648 |
|
Jun |
1,384 |
1,803 |
|
Total |
4,430 |
5,173 |
Attributing this trend to the declining commission, Sandeep Bagla, CEO, Trust MF said, “With the expected TER rationalisation, earnings are likely to be only lower going forward. Besides, online direct platforms have made the competition stiff.”
He further said, “Other financial products like insurance offer not only upfront commission but also a comparatively higher trail commission. Thus, many new people may not consider mutual fund distribution as a viable career option.”
Citing the dip to be marginal Gaurab Parija, Head-Sales & Marketing, Bandhan MF, said, “This could merely be a seasonal decline and there is no reason to worry. Let’s wait and see if any significant trend picks up going forward.”
Overall, 2.39 lakh individuals and corporates have a valid ARN/EUIN as on June 30, 2023.
