Leading asset management companies have joined hands with the National Stock Exchange of India (NSE) and the Centre for Investment Education and Learning (CIEL) to start a portal – expertmfd.com to attract new talent to distribute mutual fund in India.
The portal will provide a platform for individuals to start their career as a mutual fund distributor by allowing them to register themselves for the requisite examination and training. The portal will also offer other services such as registration with the Association of Mutual Funds In India (AMFI), one-click empanelment with mutual fund houses, mentoring, and subsequent handholding to the registered individuals after they clear NISM Series–V-A, a mandatory Mutual Fund Distributors Certification.
The mutual fund industry managed assets worth Rs 31.64 lakh crore as on February 28, 2021, as per AMFI data. The industry is expected to grow its assets to Rs 100 lakh crore by end of the decade. While the industry is expected to continue growing, there is also a need to increase the number of distributors, particularly in rural India. As of now, one mutual fund distributor caters to the investment needs of roughly 17,000 individuals in India.
By launching this portal, the stakeholders target to induct 50,000 additional mutual fund distributors over the next three years.
While CIEL takes up the role of training and induction of the new mutual fund distributors, NSE will be the transaction partner of the newly-inducted MF distributors through Expertmfd.com. Mutual funds will help subsidise some of the training costs. Aditya Birla Sun Life Mutual Fund, Axis MF, ICICI Prudential MF, L&T MF, Nippon India MF, SBI MF, Sundaram MF have supported the initiative.
Himanshu Vyapak, MD, CIEL, said, “The platform will also train these distributors on other financial products in the second phase.”
As more distributors join the profession and carry out their business in a digitally enabled manner, the penetration of mutual funds is expected to improve.