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The Rs.40 lakh crore MF industry has welcomed close to 23,300 new individual MFDs in FY 2023 as against 21,700 new individual MFDs in FY 2022, a growth of 7%, shows the latest AMFI data.
Sunil Subramanian, MD and CEO, Sundaram Mutual Fund attributes this to two AMFI campaigns - MFD Karien Shuru and Mutual Funds Sahi Hai. While the Karein Shuru campaign targeted individuals to become MFDs through a series of videos and training programs, the Sahi Hai campaign has increased the demand of mutual funds among people.
A senior official requesting anonymity pointed out that his fund house has onboarded many new individuals – insurance agents and bank correspondents as mutual fund distributors through apprentice program last financial year. Under this initiative, fund houses can have exclusive partnership with an individual MFD and pay them a monthly stipend of up to Rs.15,000 for the first 12 months.
Overall, the new ARN registrations (including corporates and their employees) jumped from 42,399 in FY 2022 to 51,453 in FY 2023.
With this, the total number of individual distributors goes up to 1.22 lakh. Of the total 1.22 lakh, 50% or over 60,000 MFDs are from B30 cities. If we include EUIN holders, the industry has 2.33 lakh foot soldiers as on March 2023.
AMFI data shows that Maharashtra accounts for the highest number of MFDs with 33% of the total distributor count coming from the state. Gujarat and Uttar Pradesh followed Maharashtra with 10% and 7%, respectively.
In terms of renewal, AMFI data shows that 29,878 individual ARNs were renewed as against 30,623 renewals in FY 2022.
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