The Association of Mutual Funds in India (AMFI) is taking a big step to expand the reach of mutual funds in smaller towns and rural areas. According to recent reports, AMFI is planning to tie up with the Department of Posts to train postmen as mutual fund distributors, bringing financial products closer to people in India’s tier-2 and tier-3 cities.
Over 2.5 Lakh Postmen to Become Mutual Fund Distributors
More than 2.5 lakh postmen will undergo special training programs and clear the NISM (National Institute of Securities Market) exam to officially qualify as mutual fund distributors. Postmen, who already have strong local connections and daily interactions with households, can play a crucial role in increasing financial awareness and trust in smaller towns.
AMFI’s Multi-Pronged Approach
To strengthen its mission of spreading financial literacy and boosting mutual fund penetration, AMFI has adopted four states — Meghalaya, Bihar, Odisha, and Andhra Pradesh. Partnering with leading educational institutes, AMFI will first train teachers, who will then educate students on the basics of personal finance and mutual funds.
The plan is divided into two phases:
- Level One: At least 10,000 people will be made financially literate.
- Level Two: Out of them, a minimum of 1,000 individuals will be encouraged to clear the NISM exam and become certified mutual fund distributors.
Postmen as Entrepreneurs
Venkat Chalasani, CEO of AMFI, said that discussions are ongoing with the postal department to understand postmen’s interest in becoming entrepreneurs through mutual fund distribution. Since postmen are already trusted figures in small towns and have a pulse on local communities, they are well-positioned to tap into potential investors.[Related-Posts]
Strong Growth in Mutual Fund Distribution
The mutual fund has been growing rapidly. In FY25, the number of individual mutual fund distributors rose by 24% to 29,555, compared to 23,787 in FY24. Over the last five years, more than 1.04 lakh individual mutual fund distributors have been added, taking the total distributor base (including corporates and EUIN holders) to 1.78 lakh across the country.
also read- How to Start Investing in Mutual Funds: Benefits and Risks Explained
The Road Ahead
Through this initiative, AMFI aims to ensure that every district in its adopted states has at least 10–20 mutual fund distributors, making financial products more accessible to people living outside metros. By empowering postmen, teachers, and students with financial knowledge, the industry hopes to create a new generation of mutual fund investors and distributors in India’s smaller cities.
