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At Cafemutual Ideas Fest 2025, Syed Hassan, Chief Program Officer, CAMS revealed that 46% of the total MF investors don’t have an SIP account.
Considering that the industry has a total of 5.26 crore investors in December 2024, 2.42 crore MF investors are yet to start their SIP journey indicating huge potential for the MF industry.
Other areas of opportunities
- 54% of investors have only one SIP—many of these have static contribution amounts
- 36 lakh SIPs have expired in the last three years. Of this, 8 lakh investors have not restarted them
- B30 towns contribute just 22% of total MF AUM
- MFDs account for only 33% of the MF business in B30 cities—highlighting a vast untapped potential
- Only 19% of investors invest across multiple asset classes
- 77% of investors invest in equity only, 1% in liquid funds only and 3% in debt only.
- 56% of investors are tied to only one AMC while just 19% invest across more than 2 AMCs
- 44% of investors invest in only one MF scheme while only 20% have exposure to more than 2 schemes
Opportunities for MFDs
- Better Support = Bigger Base: Quality service and grievance redressal can help widen the MF investor base, which currently remains in single digits
- Step-up SIPs: CAMS manages 4.60 crore SIP accounts. Of this, there is no change in contribution in 1.10 crore SIP account for over three years—this is a growth opportunity
- Reviving expired SIPs: 36 lakh SIPs expired in the last three years; engaging with these clients can lead to reactivations
During his session, Hassan gave some simple yet powerful tips to retain clients for life.
Hassan highlighted importance of post-sale service and said that MFDs should adopt Apple’s customer-centric approach to grow and retain their client base. He said Apple’s customer service is not only innovative but highly efficient, making every customer feel informed and supported.
What should MFDs learn from this?
- Keep clients aware of their investments and new offerings
- Offer proactive post-sale service that supports and educates investors
- Focus on building trust through consistent engagement and innovation
Current landscape of MFDs
Hassan said that MFDs have performed well, with the share of direct mutual fund sales coming down from Rs. 10.22 lakh crore in FY2019 to Rs. 8.76 lakh crore in FY2025. But the distribution business still needs active mediation backed by innovation, responsibility and widespread awareness.
Hassan highlighted that individual MFDs share in the total MF industry has grown from 22% in FY2022 to 26% in FY2025.
In contrast, direct sales and bank contributions have dropped to 40% and 12% in FY2025 from 41% and 13%, respectively in three years.
Other key milestones
- Gross sales by MFDs have reached Rs. 6.25 lakh crore in FY2025 compared to Rs. 2.63 lakh crore in FY2019
- SIP registrations through MFDs have jumped to 72.1 lakh from 16.7 lakh in five years
You can watch complete video by visiting this link.
