Over the last few years fund houses have lost close to 1 cr equity folios, mostly retail
India's mutual fund sector has currently only 15,000 active distributors. At a time when insurance industry alone has close to 2.5 million agents such low distributors' base is proving a setback for the fund houses.
According to industry lobby Association of Mutual Funds in India ( Amfi ) the sector as on date is having 83, 000 MF distributors registered with it. But when it comes to number of active distributors on ground it is pathetic at only 18% of the total.
No wonder why penentration of mutual fund products remain at abysmal level of less than 5% in India.
Not long ago, the industry had only 50, 000 registered distributors.Thanks to the free regustration drive by Amfi since February this year that the number could be increased to 83, 000 currently.
According to Amfi top executives, though many new distributors have joined but due to bad economic situation these individuals have not yet jumped in to start their business.
"These distributors may have got themselves registered with no fees. But they may start selling when the tide turns and situation improves, said a top Amfi official.
However, what is more alarming for the industry is the fact that against expectations the free registration drive had "lukewarm" response.
That's why Amfi had extended the waiver to September against the earlier set deadline of June. However, sources said that there are little chances of any further extension.
Over the last few years fund houses have lost close to 1 crore equity folios, mostly retail.
Meanwhile, Amfi recently had launched its voluntary district adoption scheme. The industry officials expect the move will help industry to bring in more investors from country's hinterland.
India's mutual fund sector has currently only 15,000 active distributors. At a time when insurance industry alone has close to 2.5 million agents such low distributors' base is proving a setback for the fund houses.
According to industry lobby Association of Mutual Funds in India ( Amfi ) the sector as on date is having 83, 000 MF distributors registered with it. But when it comes to number of active distributors on ground it is pathetic at only 18% of the total.
No wonder why penentration of mutual fund products remain at abysmal level of less than 5% in India.
Not long ago, the industry had only 50, 000 registered distributors.Thanks to the free regustration drive by Amfi since February this year that the number could be increased to 83, 000 currently.
According to Amfi top executives, though many new distributors have joined but due to bad economic situation these individuals have not yet jumped in to start their business.
"These distributors may have got themselves registered with no fees. But they may start selling when the tide turns and situation improves, said a top Amfi official.
However, what is more alarming for the industry is the fact that against expectations the free registration drive had "lukewarm" response.
That's why Amfi had extended the waiver to September against the earlier set deadline of June. However, sources said that there are little chances of any further extension.
Over the last few years fund houses have lost close to 1 crore equity folios, mostly retail.
Meanwhile, Amfi recently had launched its voluntary district adoption scheme. The industry officials expect the move will help industry to bring in more investors from country's hinterland.
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