Listen to this article
An MFD will manage AUM of at least Rs.281 crore on average by 2047, according to AMFI’s vision document commissioned by PwC.
The report said that the average AUM per distributor will go up from the current Rs.26 crore to Rs.281 crore by 2047.
Further, the number of distributors and RIAs will also go up from 2.07 lakh in 2024 to Rs.10 lakh in 2047.
The report says that this expansion in distribution capacity will be crucial for maintaining service quality and advisory support as the industry scales.
The report suggests AMFI and AMCs to empower distributors with training support, resources and digital tools to enhance their productivity.
Also, the MF industry should promote fair compensation and ensure regulatory compliance for investor protection. In addition, AMFI should focus on increasing the number of distributors from underserved areas, said the report.
The report also suggested MFDs highlight the power of compounding through real life success stories, stay in constant touch with investors and offer guidance at key financial milestones.
Here are other suggestions for MFDs:
· Upskill to serve underserved segments including the gig workers and low-literacy investors
· Gain expertise in inclusive technologies and financial products designed for these segments
· Leverage platforms with built-in accessibility features to facilitate better investor engagement
