Top 610 individual MFDs manage assets of Rs.2.86 lakh crore

Big distributors are getting even bigger. A report released by Bandhan Mutual Fund reveals that India’s top 610 MFDs manage AUM of Rs.2.86 lakh crore. These distributors saw their assets grow by over 70% in four years. 

The report based on MFDex data that captures over 90% of the industry data reveals that the top 10 individual MFDs manage AUM of Rs.20,700 crore in January 2024. Interestingly, they witnessed a massive growth of 123% since March 2020 when they managed AUM of Rs. 9,320 crore. Each of these distributors manages AUM of at least Rs. 1550 crore in Jan 2024.

The next 50 MFDs with AUM falling between Rs.840 crore and Rs.1550 crore manage over Rs.27,000 crore saw growth of 97% in four years. 

Further, the next 50 MFDs or MFDs ranked between 61^st and 110^th saw their total assets grow to Rs.35,000 crore in Jan 2024 from Rs.19,500 crore in March 2020, a growth of 81% in four years. These MFDs fall under AUM band of Rs.625 crore-Rs.840 crore.

Finally, the next 500 MFDs manage AUM of Rs.1.75 lakh crore in Jan 2024 as against Rs.1.10 lakh crore in March 2022. These MFDs have AUM of less than Rs.625 crore. 

Let us look at this interesting table to know more. 

Gaurab Parija, Head - Sales and Marketing, Bandhan MF attributes this widening gap between top distributors and other distributors to ignorance of fixed income funds. He said that all top MFDs have close to 40% of their total assets coming from fixed income funds. 

Parija said that other MFDs should start recommending fixed income funds as Indian households have invested just Rs.3.70 lakh crore in fixed income funds excluding liquid and overnight funds, which is much less than Rs.100 lakh crore in bank deposits.

Parija also urged MFDs to focus on acquiring new clients and upskilling themselves to grow business. He also said that MFDs should make a business plan and attend training and development programs of AMCs to excel in business.