Only 7.5% individual MFDs are truly active; 13,451 have AUM above Rs.25 crore

The mutual fund distribution industry continues to see sharp consolidation, with a small section of distributors cornering a disproportionately large share of assets.

An analysis of internal data available with a few AMCs and accessed by Cafemutual reveals that only around 7.5% of individual mutual fund distributors (MFDs) can be considered meaningfully active as of March 2026.

Out of the total 1.79 lakh individual MFDs in the industry, only 13,451 distributors currently manage assets of at least Rs.25 crore.

Please note we have considered individual MFDs and boutique MFD firms to arrive at the number of active distributors in India.

The data underscores the widening gap between dormant ARN holders and serious distribution businesses that are scaling rapidly with rising investor participation, SIP flows and increasing financialisation of household savings.

At the top end of the pyramid, 125 individual MFDs now manage assets exceeding Rs.1,000 crore each. The number has risen sharply from just 24 such distributors in FY 2020 and 101 in FY 2025.

Similarly, the number of individual MFDs managing between Rs.500 crore and Rs.1,000 crore has increased to 263 in FY 2026, compared to 55 in FY 2020 and 226 in FY 2025.

The mid-sized distributor segment has also expanded significantly. Individual MFDs with assets between Rs.100 crore and Rs.500 crore stood at 2,677 in FY 2026, up from 600 in FY 2020 and 2,377 in FY 2025.

Taken together, the industry now has 3,065 individual MFDs managing assets exceeding Rs.100 crore.

The data indicates that the growth is not restricted to the largest players alone. There are currently 3,509 individual MFDs with AUM between Rs.50 crore and Rs.100 crore, while another 6,877 distributors fall in the Rs.25 crore to Rs.50 crore category.

The numbers highlight a broader structural trend playing out in the industry — while the total number of ARN holders remains large, a relatively small pool of distributors is driving the bulk of incremental business.

Individual MFDs by AUM Category (FY 2026)

Source: Industry data analysis

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