Mutual Fund Distributors Face Challenges

Mutual fund distributors in India are facing tough times.

Over the past decade, the number of distributors has grown much slower than the amount of money invested in mutual funds.

This is because of several reasons.

First, more people are buying mutual funds directly through fintech apps, bypassing distributors.

Second, regulations have reduced the fees that distributors can earn.

Third, mutual fund companies are not investing much in training distributors, unlike insurance companies.

These challenges are making it hard for distributors to make money, and some are even thinking of leaving the business.

Experts say that while the long-term earnings model for distributors is good, the immediate impact of these changes is making it difficult for them to survive.