Role and Importance of Digital Modules for Mutual Fund Distributors in India

Description

Yogesh Kumar Pandey, Pawan Kumar Patel, and Sahil (Mutual Fund Distributors, I-Mart Infovest Private Ltd, Hissar, Haryana)

The mutual fund industry in India has witnessed exponential growth, with Assets under management (AUM) surpassing 570 lakh crore by early 2023, driven by rising financial literacy, SIP penetration, and a young investor base. Mutual Fund Distributors (MFDs), numbering over 1.5 lakh and certified via NISM Series V-A, form the critical retail distribution backbone, onboarding 80% of individual folios amid SEBI’s push for democratization. However, traditional MFD operations-reliant on paperwork, branch visits, and manual reconciliationsface obsolescence in a digital-first era where 40% of new investors prefer apps over agents.