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The Rs.53 lakh crore MF industry added 23,787 individual MFDs in FY24 as against 23,261 in FY23, a growth of 2%.
Akhil Chaturvedi, Executive Director at Motilal Oswal MF is of the opinion that sandbox initiative by SEBI and savings boom in retail have been instrumental in getting new distributors in the system. He said, “Apart from the sandbox initiative, we have observed that a lot of new distributors have been joining the MF fold from B30 locations due to increased awareness about mutual funds.”
Gaurav Goyal, National Head - Sales and Marketing, Canara Robeco MF feels that the opportunity in the MF industry has propelled the addition of more distributors. He said, “MF industry is largely underpenetrated, which gives a huge scope to distributors to grow business.”
Rina Nathani, Chief Business Officer, Quantum MF feels that the increased consumer demand, flexibility and freedom that people get in the distribution profession attracts more people towards it. She said, “A lot of youngsters, women and middle age people who are looking to switch their professions find this profession ideal. Moreover, the flexibility to work according to own terms make it more attractive for many people. Lastly, the increased awareness has also contributed to more people wanting to be distributors.”
Saugata Chatterjee, Chief Business Officer, Nippon India MF believes that AMFI’s campaign ‘Distributor Sahi Hai’ played a key role in attracting new distributors. He said, “Apart from the AMFI campaign to promote distributors, a lot of professionals from banking and financial sector also got into the distribution business that led to a higher participation in FY24. Also, large distributors have been actively propagating about the MF industry, which is making more people interested in the business.”
Overall, the new ARN registrations and renewals (including corporates, corporate employees, individual MFDs employees and oversees distributors) saw a marginal decline to 50,841 in FY24 from 51,453 in FY 2023.
With this, the total number of individual distributors has touched 1.43 lakh. Of this 1.43 lakh, 50% or 71,843 MFDs come from B30 and the other 50% or 71,167 MFDs come from T30 locations. If we include EUIN holders, the industry has 2.67 lakh foot soldiers as on March 2024.
AMFI data also shows that Maharashtra continues to have the largest number of MFDs with 25% of the total distributor count coming from the state. Gujarat and Uttar Pradesh follow Maharashtra with 11% and 7% respectively as of March 2024.
