Posmen to be trained as distributors of mutual fund in small towns: Report

More than 2.5 lakh mail people trained as distributors of mutual fund by undergoing special training programs and give the Nism (National Institute of Securities Market) exam, Business Line reported. The Association of Mutual Funds in India (AMFI) used a multiple approach to improve the score of Mutual Fund (MF) distributors and improve financial literacy in smaller cities. The body of the industry plans to commit the Department of Posts to convert mail people to MF distributors, especially in smaller towns. Amfi has begun to adopt four states – Meghalaya, Bihar, Odisha and Andhra Pradesh – to distribute financial literacy in colleges and schools. It intends to give hands with leading institutes in the states that will identify and reach out to educational institutions to keep classes at two levels. Targets that lie ahead at the first level are AMFI target to make at least 10,000 people financially literate and then convert a minimum of 1,000 than MF distributors by making it appear for the specific exam. CEO Venkat Chalasani said the trading body had begun talks with the post department to determine the personal interest among mailmen in taking the MF distribution business and becoming entrepreneurial. Posmen are in careful contact with the people in smaller towns and have the pulse of developments on the ground to use potential investors, he added. In the four adopted states, he said, the partner institutions will only train the teachers who in turn will learn students. “We want students to clean 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 is aimed at at least 10-20 distributors in each district of the adopted states through this program. With the rising assets under management (AUM) and a strong amfi campaign, the addition of distributors hit a five-year last fiscal. The addition of individual MF distributors jumped by 24 percent to 29,555 individuals at 23,787 in FY24. In the past five years, the industry has 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 containers (employees of banks, national distributors or other MFDs). In general, the industry has 1.78 lakh distributors, including 1.62 lakh individual MFDs. Visit here for all updates for personal finance