Close to 30,000 individuals join mutual fund distribution business in FY 2025

An analysis of industry data shows that the mutual fund (MF) industry has added a record number of individual distributors in FY 2025.

Our analysis indicates that 29,555 individuals joined the mutual fund distribution business in FY 2025 — the highest number recorded in the last five years or since such data has been available.

If we include the addition of other distributor categories like corporate MFDs, private limited or partnership firms, and EUIN holders (employees of banks, national distributors, or other MFDs), the total number of new distributors added in FY 2025 rises to 64,109,  again, the highest ever recorded.

In the past five years, the industry has added 1.04 lakh individual MFDs and 2.25 lakh total distributors including EUIN holders.

Here's a year-wise breakdown:

Manish Mehta, National Head – Sales and Distribution at Kotak Mutual Fund and the Member of AMFI’s Certified Distributors (ARN) Committee said that close to 1 crore new investors joined the MF industry in FY 2025. “Whenever there is demand, supply follows,” he said. “Also, historically, whenever the markets perform well, more people are motivated to explore entrepreneurial opportunities.”

He further added that distributors are now looked upon with respect, especially due to their practices of recommending the right products such as diversified funds and promoting concepts like SIPs, STPs, and asset allocation.

“While distributors were often accused of mis-selling in the past, over the last 10–15 years, many investors have started valuing them for helping create wealth and delivering long-term value,” said Mehta.

Rohit Mattoo, Head – Retail Sales at Axis Mutual Fund and a Member of AMFI’s ARN Committee, believes that mutual fund distribution is emerging as one of the best career choices for young Indians. “Many individuals in small towns are now acquiring ARNs to start their own ventures,” he said. He also highlighted that AMCs and national distributors have been running awareness campaigns across the country to attract more people to the profession.

Saugata Chatterjee, CBO – Sales & Distribution at Nippon India Mutual Fund, pointed out that many bank employees and relationship managers from wealth management firms joined the mutual fund distribution business last year. He also noted that the industry has seen increased participation from individuals in small cities and rural areas, driven by greater awareness of mutual fund products and the strong performance of equity markets during the year.

Overall, the industry now has 1.78 lakh distributors, including 1.62 lakh individual MFDs. Notably, 45% of MFDs are based in B30 cities (beyond the top 30 cities).

If EUIN holders are included, the MF industry now has a total of 3.01 lakh foot soldiers as of March 2025.

Further, our analysis shows that Maharashtra accounts for the highest number of new ARN registration with 22% of the total distributor count coming from the state. Gujarat and Uttar Pradesh follow Maharashtra with 9% and 8%, respectively.

Among the top 10 states which added the highest number of ARN holders are West Bengal, Bihar, Tamil Nadu, Madhya Pradesh, Karnataka, Rajasthan and Delhi.

In terms of ARN renewals, 45,994 individuals renewed their licenses in 2025. Overall, 72,982 ARNs (including EUINs) were renewed in the last financial year.