Where do MFDs and fintechs stand in the world of mutual funds?

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Fintech firms are gaining ground in distribution business but MFDs are still far ahead. Individual and national distributors (NDs) command 37% share in the total industry AUM compared to 5% in case of fintechs.

As on March 2021, assets under advisory of distributors and NDs amounted to Rs.12 lakh crore out of the total Rs.32 lakh crore industry assets. Fintechs have an AUA of Rs.1.60 lakh crore, shows IDFC MF’s ‘Mutual Fund Trends’ report, which was prepared from CAMS-MFDEx data. The report covers 96% of the overall industry.

In case of new sales in FY 2021, share of MFDs (includes individual distributors and NDs) was 28%. If we exclude the direct sales, the percentage jumps to 54%. For fintechs, the overall figure was 8%.

If we look at the figure category wise, fintechs have a larger share in debt sales compared to equities. The report shows that 17% of the overall debt sales in FY 2021 came through fintechs. The same figure for equity funds was much lower at 7%.

Fintechs performance in parameters such as net sales, SIP registrations and new folio additions is better. In FY 2021, fintechs recorded Rs.42,271 crore net sales and registered 36 lakh SIPs. MFDs registered 41 lakh SIPs in FY 2021. 

The report does not includes cash and overnight fund sales data.

AUM share

 

Distributors

Fintechs

NDs

FY 2021

24%

5%

13%

FY 2020

22%

5%

12%

AUM March 21

7,72,127

1,60,860

4,18,236

       

New sales

       

FY 2021

16%

8%

12%

FY 2020

18%

7%

9%

       

New sales (excluding direct)

       

FY 2021

31%

16%

23%

FY 2020

34%

13%

17%

       

Equity sales

       

FY 2021

38%

7%

20%

FY 2020

38%

6%

19%

       

Debt sales

       

FY 2021

30%

17%

25%

FY 2020

34%

16%

16%

       

Net sales (Rs crore)

       

FY 2021

-5,774

42,271

5570

FY 2020

66,101

1,65,483

45,284

       

SIP registrations (in lakh)

       

FY 2021

20.86

36.19

20.06

FY 2020

11.63

21.14

16.21

       

New folios

       

FY 2021

31,87,006

37,22,355

28,39,586

FY 2020

15,07,708

23,01,681

19,25,242

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