Coverage on NSE & CIEL join hands with AMCs for over 50k new MF distributers
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Date: 16-Mar-2021
Source: Various publications
Select fund houses, NSE and CIEL come together to add 50,000 new MF distributors
Economic Times
16 March 2021
Asset Management Companies along with NSE and CIEL have joined hands to add 50,000 new to industry Mutual Fund Distributors over the next 3 years. This will help increase penetration, and get new investors into the mutual fund industry.
This is being done under the aegis of Expert MFD, a pan-India collaborative initiative comprising AMCs who manage two third of the assets of the Mutual Fund Industry. Fund houses like Aditya Birla Sun Life Mutual Fund, Axis MF, ICICI Prudential MF, L&T MF, Nippon India MF, SBI Mutual Fund and Sundaram MF who have joined hands with NSE (National Stock Exchange) and CIEL (Centre for Investment Education and Learning) to support this initiative.
In-spite of the tremendous growth in assets under management with assets over Rs 30 lakh crore, India still remains under penetrated with only 2% of population investing in mutual funds. Mutual fund AUM, as a percentage of bank deposits is still 18%; India has assets under management (AUM) to GDP ratio of only 12%. The world average AUM to GDP ratio is at 63% with developed markets such as the US and Canada at 120% and 81%.
As per the industry there are just 1 distributor for every 17,000 people, indicating a growth opportunity for insurance agents, retired BFSI professionals, homemakers, BFSI employees, and students. Top individual MF distributors earn more than Rs 1 crore in annual gross commissions, showing the potential for earnings.
Expert MFD has built a holistic infrastructure to create financial entrepreneurs / mutual fund distributors through its first in India unique collaborative platform which will offer end-to-end support to anyone who wants to make a career as an expert financial distributor.
“We have about 2.3 crore unique MF investors in India. The growth in MF distributors has not kept in pace with the growth of assets in MF Industry. Our endeavor is to build a strong foundation and a cohesive growth environment for future financial experts by providing a full stack end-to-end platform for anyone who wants to become an expert financial distributor. This is done through the aegis of technology intervention and strong partnerships. The platform will also train these distributors on other financial products in the second phase,” says Himanshu Vyapak, MD, CIEL.
Updated on: 14/05/2021
