Amid growth hurdles, mutual fund advisors see 51% dip in new entrants

In FY20, registrations for new independent financial advisors reduced to 8,594

The Rs 22-trillion mutual fund (MF) industry is facing growth hurdles not only from heightened market volatility, but also from a slowdown in the ranks of new individual distributors or independent financial advisors (IFAs) entering into the industry.
 

According to data, the number of new Amfi registered number (ARN) for IFAs was 8,594 in 2019-2020, which was 51 per cent lower than previous fiscal. Overall, the industry added 41,501 new distributors, slipping 26 per cent from previous fiscal.
 

ARN is a unique code allotted to intermediaries by the Association of Mutual Funds in India (Amfi).
 

Earlier, the MF industry had