MF industry: Market rally, lockdown easing spur four-fold rise in IFAs

Number of new entrants still lower than previous fiscal's monthly average

Individual mutual fund (MF) distributors are seeing an increase in their numbers, with the recent market rally and partial lifting of the lockdown improving sentiment.

In July, the number of newly registered independent financial advisors (IFAs) stood at 330, which was over 4x June’s tally.

“A combination of the markets seeing a sharp bounce-back since March and the gradual opening up of economic activity has aided sentiment. We have seen higher traction for MF products in recent months, especially among millennials and the middle-aged group,” said Ritesh Sheth, co-founder of Tejas Consultancy.

Renewals by existing IFAs have also seen a