The recent growth trend of the MF industry by AMFI shows that the industry has welcomed more than 23,000 new individual mutual funds distributors (MFDs) in the fiscal year 2022-2023 (FY2023). The surge in new MFDs is a positive sign for the mutual fund industry in India, as it reflects a growing interest among individuals in investing in mutual funds.
The increase in number also shows that in the AMFI data, the total number of MFDs were 21,700 in FY2022, which indicates a growth of 7% in a single year. This represents the various measures assumed by SEBI and AMFI has educated many individuals and encouraged them to become distributors.
In addition to that, it has come to notice that any of the fund houses of the MF authority has hired many insurance agents, bank correspondents as MF distributors under an initiative and in this program they pay a monthly stipend of RS. 15,000 to the individual MFD in partnership.
The rise of the MFD individuals also signifies the growing importance of mutual funds as a preferred investment among Indians. According to the data, B30 cities have shown the highest growth with over 50% of MFDs. Plus, Maharashtra, Gujarat and Uttar Pradesh have shown 33%, 10% and 7% growth respectively.
It also indicates the industry is more expanding and growing in smaller cities and towns where penetration of mutual funds is still relatively low. The ARN (Application Reference Number) registration has been forward upto 51,453 from 42,399 in FY2022.
Overall, the addition of 23,000 new individual MFDs in the mutual fund industry in FY 2023 is a positive sign for the industry and Investors. It is expected to fuel the growth of the industry in the coming years.