Postmen to get trained as mutual fund distributors in small towns: Report

Over 2.5 lakh postmen to be trained as mutual fund distributors by undergoing special training programmes and giving NISM (National Institute of Securities Market) exam, reported Business Line.

The Association of Mutual Funds in India (AMFI) has adopted a multi-pronged approach to enhance the count of mutual fund (MF) distributors and improve financial literacy in smaller cities.

The industry body plans to tie up with the Department of Posts to convert postmen to MF distributors, especially in smaller towns.

AMFI has started adopting four States — Meghalaya, Bihar, Odisha, and Andhra Pradesh — to spread financial literacy in colleges and schools. It plans to join hands with leading institutes in the states that would identify and reach out to educational institutions to conduct classes at two levels.

Targets ahead

In the first level, AMFI targets making at least 10,000 people financially literate and then converting a minimum of 1,000 as MF distributors by making them appear for the specific exam.

Venkat Chalasani, CEO, AMFI, said that the trade body had initiated talks with the postal department to ascertain the personal interest among postmen in taking the MF distribution business and becoming entrepreneurs.

Postmen are in close touch with the people in smaller towns and have the pulse of developments on the ground to tap potential investors, he added. In the four adopted States, he said, the partner institutions will train the teachers first who, in turn, will teach students.

“We want students to clear the phase one test to understand the basics. Then they can appear for NISM exams to become distributors and become an entrepreneur,” he added.

AMFI targets having at least 10-20 distributors in each district of the adopted States through this programme.

With the soaring assets under management (AUM) and strong AMFI campaign, the addition of distributors hit a five-year high last fiscal. The addition of individual MF distributors jumped 24 per cent to 29,555 individuals last fiscal against 23,787 in FY24.

In the past five years, the industry added 1.04 lakh individual MFDs and 2.25 lakh total distributors, including others such as corporate MFDs, private limited or partnership firms, and EUIN holders (employees of banks, national distributors or other MFDs). Overall, the industry has 1.78 lakh distributors, including 1.62 lakh individual MFDs.

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