New Delhi [India], December 27: Mutual funds have become a crucial part of investments, wealth building, and regular savings. Despite the growing awareness of mutual funds, it is estimated that only 3% of India’s population has invested in mutual funds, as per the Association of Mutual Funds In India (AMFI). Further, the mutual fund penetration is also significantly lower than other countries’ penetration rates when seen as the ratio of mutual fund AUM to the GDP ratio, where India’s standing is at a mere 15.90%, compared to the US, Singapore, and the UK’s 148.90%, 179.90%%, and 74.80%%, respectively (Source:- Cafemutual, March 2022).
The number of mutual fund distributors in India is also a matter of concern. Currently, there are close to ^1.70 lakh distributors, which means less than one distributor for every 10,000 individuals (AMFI, 2024). NJ Wealth, one of the largest mutual fund distributors in India, has been playing an active role in getting more people to join the mutual fund distribution business and see it as a promising business opportunity. Today, NJ Wealth has 41,148 active distributors spread across India who are working towards spreading financial awareness and providing access to mutual funds to the masses.
The geography, diversity, and disparity in terms of financial literacy and access to new-age financial products are a big challenge in India. However, this is also an opportunity for aspiring entrepreneurs and the youth of the country to become mutual fund distributors and promote financial inclusion to potential investors. Today, India is poised to take a giant leap in transforming its economy and the markets, with the vision of ‘Amrit Kaal’ extending to how people will save and invest. The encouraging growth of the industry in recent years is just the beginning. What is needed today is for more youth to see the opportunity in the transformation waiting to unfold in the coming decades and pursue mutual fund distribution as a career opportunity. For investors, the stage is already set, and we only hope to see more and more people participating in India’s growth story with mutual funds. After all, ‘mutual funds sahi hai’ isn’t it?
(Source:- Cafemutual, March 2022:- https://cafemutual.com/news/industry/28209-indian-mf-industry-is-highly-underpenetrated
* Source:- CAMS – June 2024 ^As on 31st October 2024
If you have any objection to this press release content, kindly contact [email protected] to notify us. We will respond and rectify the situation in the next 24 hours.
