Postmen to sell mutual funds? 1 lakh India Post staff to undergo MF distributor training by AMFI

The Association of Mutual Funds in India (AMFI) is working with India Post to train nearly one lakh postmen as mutual fund distributors as an initiative to double the investor base. This initiative will focus on four states to ensure that every district has at least 10 distributors by the end of the year.

AMFI Chief Executive, Venkat N Chalasani, said that the industry body has adopted four states - Bihar, Andhra Pradesh, Odisha, and Meghalaya where it will train the college students. The industry body is targeting nearly 20,000 new mutual fund distributors in these four states in the first year.

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"By the end of the year, we expect at least 10 distributors in each district of these states and at least 20 by next year. Besides, tie-ups with leading academic institutions are in the offing to "train the trainers,” Chalasani said.

For mutual funds, nearly 45% of the investments are coming from B30 cities, although overall, 65% of the shares are from T30 cities.

Around 30,000 new distributors join the mutual fund industry annually, but net additions hover around the 10,000 mark. While changing the savings habit, online platforms have seen a growth in new mutual fund investors, especially via the SIP route. New distributors are seen to be critical in expanding the footprint to smaller towns and rural areas.

The mutual fund folios have jumped from 2.1 crore in 2019 to 5.6 crore now, indicating a boom in mutual fund investments in the last few years. The AMFI chief said that the aim is to double it in the next few years.

While pointing out 80 crore bank accounts in the country, Chalasani said, “Our campaign has created tremendous awareness and we will see a massive growth as there is a huge potential.”

Currently, the assets under management (AUM) in India account for 21% of GDP, compared to more than 100% in developed countries and nearly 65% being the global average.

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On July 17, the Department of Posts (DoP) signed an MoU with AMFI to offer KYC verification and document collection services through its 1.64 lakh+ post offices, ensuring smooth compliance for mutual fund investors.