Selling mutual funds turns less attractive for financial advisors

IFAs say the reduction in incentives, and over-regulation is making MF distribution a less attractive proposition

Selling of mutual fund (MF) products is turning less attractive for individual distributors, who play a key role in onboarding first-time MF investors.

According to industry estimates, the number of new Amfi registered number (ARN) for independent financial advisors (IFAs) in the September quarter stood at 2,106, which was 11 per cent lower than in the previous quarter. Compared to the March quarter, the tally is 36 per cent lower.

Compared to corresponding period last fiscal, so far the MF industry has added 60 per cent lower number of new IFAs in the current financial year. 

ARN is a