AMFI And India Post Come Together To Train 1 Lakh Postmen As MF Distributors To Boost Financial Inclusion

The Association of Mutual Funds of India (AMFI) and the Department of Posts (DoP) joined hands to train 1 lakh postmen as mutual fund (MF) distributors. The initiative is to enhance mutual fund penetration in smaller towns and cities. AMFI, the self-regulatory body, first initiated this program in four states (Bihar, Andhra Pradesh, Odisha, and Meghalaya), as reported by The Times of India. The target is to have a minimum of 10 distributors in each district this year and 20 distributors by next year in these states. The plan is to train 20,000 new distributors, impart training to college students, and create a group of trainers to train the trainers.

In July 2025, AMFI and the DoP signed a memorandum of understanding (MoU) to make Know Your Customer (KYC) verification for mutual funds easier for the investors. This aims to ease the KYC process, making it convenient for investors.

Reportedly, around 30,000 MF distributors join the industry every year; however, the net number remains around 10,000. The increasing number of folios and the asset under management (AUM) data from AMFI indicate that mutual fund awareness has increased among people over the years.

Number Of Folios And AUM Growth

The number of folios, which stood at 10.55 crore as of July 31, 2021, has now grown to 24.57 crore as of July 31, 2025, reflecting around a 133 per cent rise. Compared to 24.13 crore folios as of July 31, 2024, folios grew by nearly 2 per cent over one year. The number of investors is growing due to increased awareness and a special inclination towards Systematic Investment Plans (SIPs). 

MF Market Potential In B30

According to a ‘B30 locations - Performance & Potential’ report by CAMS in 2025, which analysed the B30 cities data, says that in these cities, penetration is improving. B30 in mutual funds refers to cities beyond the top 30 cities. The report says that B30 locations continue to grow on the back of MFDs (mutual fund distributors), but digital adoption helped Registered Investment Advisors (RIAs) to make space in the markets. It also highlights the significant share of B30 locations that comes out to be around 58 per cent of the investor base.

With the maximum number of investors from the 31-40 years age bracket (30 per cent), followed by the 21-30 years age group (26 per cent) and 41-50 years age group (17 per cent), B30 offers a potential market for MFs and better facilities, and in-person can help improve it.

Efforts To Improve MF Penetration

Also, MF penetration has improved a lot over the last few years in India, but it is still low. For example, the AUM is 21 per cent of the GDP, which is much lower compared to the global average of 65 per cent, per the report.

Recognising the potential, AMFI partnered with the DoP for streamlining KYC process and utilise India Post’s extensive network and workforce to improve services and expand the reach of mutual funds to smaller cities, towns, and villages.