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A report released by Bandhan MF ‘MF Trend FY 2022-23’ shows that Fintech/RIAs registered 84.33 lakh new SIPs in FY 2022-23, the highest among other MF players.
NDs and banks recorded the next-highest count of 41.31 lakh and 38.20 lakh, respectively. Not far behind are individual MFDs who registered 36.10 lakh new SIPs. The respective count of direct AMC and corporate distributors stood at 22.02 lakh and 1.21 lakh.
Correlating this to the overall market reach, Gaurab Parija, Head - Sales & Marketing, Bandhan MF said, “These numbers emerge from the reach that industry players have. Fintech/RIAs enjoy an edge over other players and hence enjoy the maximum reach. NDs and banks also have a strong reach through their distributor partners.”
How have these figures changed in one year?
Overall, the new SIP registrations declined by 6% from 2.36 crore in FY 2021-22 to 2.23 crore in FY 2022-23.
A further review shows that NDs and individual MFDs recorded the maximum absolute increase in the new SIP count. Individually, they recorded an annual rise of 2.04 lakh and 1.04 lakh. On the other hand, Fintech/RIA and direct platforms registered the highest decline of 8.88 lakh and 6.31 lakh, respectively.
In percent terms, the new registrations increased the most by 57% for corporate distributors and declined the highest by 22% in the case of direct plans.
|
Particulars |
FY 2022-23 |
FY 2021-22 |
Absolute Change |
% Change |
|
NDs |
41,30,973 |
39,26,387 |
2,04,586 |
5% |
|
MFDs |
36,09,749 |
35,05,494 |
1,04,255 |
3% |
|
Corporate Dist |
1,21,233 |
77,223 |
44,010 |
57% |
|
Bank/PCG |
38,20,128 |
39,83,050 |
-1,62,922 |
-4% |
|
Direct |
22,02,420 |
28,33,890 |
-6,31,470 |
-22% |
|
Fintech/RIA |
84,33,583 |
93,21,916 |
-8,88,333 |
-10% |
|
Total |
2,23,18,086 |
2,36,47,960 |
-13,29,874 |
-6% |
Source: CAMS, MFDex, data as on FY23
Gaurab stated, “The overall 6% decline could largely be due to the rising repo rates which consequently increased the EMI obligations. Many investors thus pushed their decision to register a new SIP to service their debt obligations. Also, since the markets were at relatively higher levels during FY 2022-23, psyche came into play and certain investors chose to invest at a later time.”
He added, “Currently, corporate distributors have a small base and hence the rise is substantial at 57%. And, in absolute terms, MFDs take the lead given their ability to convey SIP as an all-weather product while handholding investors through market volatility.”
Mumbai MFD Sadashiv Phene said that many investors need handholding by distributors. He said, “In the absence of professional guidance, investors tend to make individual calls which are largely influenced by recent returns and market volatility. However, MFDs through constant interaction underline the importance of SIPs and guide the investors by filtering out biases to register SIPs for meeting financial aspirations.”
