MFDs also provide ongoing support such as portfolio reviews, guidance on switching funds, and helping investors stay disciplined during market fluctuations.
A recent survey by ZFunds, which covered more than 500 distributors across 100 cities, highlights how this profession is evolving, particularly with the entry of millennials.
Who are the new distributors?
The survey found that 65% of distributors are millennials, indicating a generational shift in the industry.
Of the respondents, 36% are currently employed in other jobs and are pursuing mutual fund distribution alongside their primary careers.
This reflects a broader trend of professionals diversifying their income sources through financial services.
Why are they choosing this profession?
The motivations for becoming a mutual fund distributor vary. According to the survey:
- 35% said they have a genuine interest in financial markets.
- 30% cited the opportunity to earn an additional income stream.
- 43% expect distribution to become their main income in the next five years, while 57% plan to keep it as steady secondary income.
- Nearly 48% want to quit their jobs and become full-time MFDs within five years.
Some respondents also highlighted demand in their local markets — 19% reported friends and family seeking advice on investments but lacking proper channels, while 16% were influenced by financial advertisements on YouTube and TV.
Manish Kothari, Co-Founder and CEO, ZFunds, said the perception of distributors has changed significantly.
“Until a few years ago, MFDs were seen as agents pushing papers and selling investments. Today, they are entrepreneurs building advisory businesses. The influx is driven by rising demand for expert investment guidance, and these MFDs are evolving into lifelong financial coaches,” he said.
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He added that the profession now attracts a wide range of talent, including ex-bankers, finance officers, B-school graduates, IITians, senior corporate professionals, chartered accountants, and CFOs.
How do MFDs support investors?
The survey sheds light on what investors expect most from distributors:
- 55% of MFDs said clients look for help in selecting the right mutual funds.
- 33% reported investors ask for regular portfolio reviews.
These insights suggest that beyond facilitating transactions, MFDs act as long-term advisors, ensuring portfolios remain aligned with investor goals and changing market conditions.
Growth ambitions of young MFDs
Millennial distributors are also setting ambitious business targets.
Around 27% aim to build assets under management (AUM) of ₹5 crore or more within five years, while 87% hope to cross ₹10 crore in the next decade.
Training and skill development
To remain updated, many distributors prioritise professional learning. The survey revealed that 45% prefer weekend training sessions, especially Saturday mornings, as they balance distribution with other professions during the week.
Women in distribution
While men dominate the field, the share of women distributors has grown to 14%, pointing to increasing female participation not only as investors but also as professionals in the financial sector.
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