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SEBI's Amarjeet Singh calls mutual fund distributors behavioural anchors

SEBI's Amarjeet Singh calls mutual fund distributors behavioural anchors
Mutual fund distributors can act as a behavioural anchor: SEBI's Amarjeet Singh explains MFDs' role for investors · livemint.com

This story is about people called mutual fund distributors, who help ordinary investors choose where to put their money.

A mutual fund is like a big basket that holds many different investments, and a distributor is a guide who helps you pick the right basket.

In India, people have saved about 85 lakh crore rupees in mutual funds, which is a huge amount of money.

A group called SEBI, which makes sure investing in India is fair and safe, held a training event for distributors.

At the event, SEBI leader Amarjeet Singh explained why distributors matter so much to investors.

He said distributors act like a 'behavioural anchor', helping people stay calm when the stock market goes up and down.

Investors who get help from a distributor often keep their money invested for longer than people who invest all on their own.

Distributors also help people in small towns learn about investing and choose good products.

SEBI is creating new ways for distributors to help more, while Mr. Singh reminded them to always be honest and put investors' interests first.

Key facts

Mutual fund industry AUM
Around ₹85 lakh crore
AUM growth
Crossed ₹10 lakh crore in 2014; grew more than eightfold in over a decade
Mutual fund folios
Over 27 crore
Unique mutual fund investors
Over 6 crore
Retail/HNI assets via distributors
About 71%
SIP assets held 5+ years (regular vs direct plans)
34% vs 20%
B-30 cities share of AUM
Almost 19%, up from about 16% five years ago
Proposed MF-only PMS minimum investment
₹25 lakh, vs ₹50 lakh for conventional PMS

Quotes

Amarjeet Singh

SEBI member and whole‑time member

“"Distributors have been central to this journey. They serve as the bridge between households and capital markets, playing a critical role in guiding and handholding investors,"”
livemint.com

Sources

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