“Regardless of all of the curiosity within the inventory market after COVID, there are nonetheless solely 5 crore distinctive mutual fund buyers. I’ve mentioned this earlier as effectively—one of many largest challenges for the Indian markets is the dearth of an advisory ecosystem with nearly 900 RIAs,” Kamath tweeted.
He additionally drew comparisons between MFDs and insurance coverage brokers with the latter being practically 10x the previous.
“In case you contemplate mutual fund distributors, there are about 2.7 lakh+ plus, however nonetheless not sufficient. For a broad comparability, there are over 27 lakh+ insurance coverage brokers. If Indian markets should broaden, not solely do we’d like RIAs however MFDs as effectively. Furthermore, it is tough to make the RIA mannequin work in smaller cities and cities. Although we solely supply direct plans at Zerodha, we all know that they don’t seem to be for everybody. Which suggests distributors will all the time have a job to play. Being a mutual fund distributor can be a very good profession choice for lots of people,” the tweet mentioned additional.
Traders taking publicity to equities through SIPs is a rising pattern in India. The month-to-month mutual fund SIP crossed the Rs 25,000 crore mark for the second consecutive month, standing at Rs 25,320 crore in November, in comparison with Rs 25,323 crore in October.The variety of SIP accounts reached an all-time excessive of 10,22,66,590 in November 2024, up from 10,12,34,212 in October and 9,87,44,171 in September.The retail AUM (Fairness + Hybrid + Resolution-Oriented Schemes) stood at Rs 39,70,220 crore in November, in comparison with an AUM of Rs 39,18,611 crore in October.Additionally Learn: Rip-off alert! What Zerodha’s Nithin Kamath mentioned on Trafiksol ITS Applied sciences IPO, Baap of Chart
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