- AMFI partners with India Post to train 1 lakh postmen as mutual fund distributors
- Focus on four states to ensure 10 distributors per district by end of 2025
- Distributors must clear NISM exam after special training to become certified
The Association of Mutual Funds of India (AMFI) has partnered with India Post to train one lakh postmen as mutual fund distributors. The aim is to strengthen last-mile access to investment products and improve financial literacy, especially in smaller towns and rural areas.
The industry body is currently focusing on four states to ensure each district has at least 10 distributors by the end of 2025, The Hindu Business Line reported.
Venkat Nagewar Chalasani, the Chief Executive of AMFI, said, "By the end of the year, we expect at least 10 distributors in each district of these states and at least 20 by next year."
The AMFI is training college students and targeting 20,000 new distributors in Bihar, Andhra Pradesh, Odisha, and Meghalaya in the first year, said Mr Chalasani. It is also planning to build a pool of certified experts who can further train others.
The distributors will undergo special training programmes and have to clear the National Institute of Securities Market (NISM) exam to become MF distributors. The program is focused on postmen who will be the first to be taught the basics of the scheme.
Since mutual fund access is still very low in smaller towns and rural areas, the programme is especially aimed at such regions.
Mr Chalasani said, "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."
The AMFI earlier partnered with the Department of Posts to resolve legacy issues around Know Your Customer (KYC) compliance, particularly for individuals who did not have their Aadhaar numbers linked.
The mutual fund sector sees about 30,000 new distributors each year, but net additions are closer to 10,000. Currently, the bottom 30 towns account for almost 45 per cent of mutual fund investments, while the top 30 cities account for 65 per cent of the total share.
