The Indian mutual funds industry is set for a transformative push, led by the Association of Mutual Funds in India (AMFI) in partnership with India Post, aiming to expand the country’s mutual fund distribution network and deepen financial inclusion. As reported by The Times of India, the initiative plans to train approximately one lakh postmen across India to act as mutual fund distributors, effectively turning every district in selected states into a hub for mutual fund awareness and investment.

The programme will initially focus on Bihar, Andhra Pradesh, Odisha, and Meghalaya, targeting the addition of 20,000 new distributors within the first year. By the end of 2025, the objective is to ensure that each district has at least 10 trained distributors, with a longer-term goal of increasing this number to 20 per district. The initiative also integrates partnerships with academic institutions, implementing a train-the-trainers model to boost local capacity, strengthen distribution networks, and create sustainable infrastructure for financial services in rural and semi-urban areas.

A critical aspect of the initiative is facilitating KYC compliance for individuals without Aadhaar numbers, thereby addressing barriers to participation and enabling wider access to mutual fund investments. Currently, around 45% of mutual fund investments originate from smaller towns, while the top 30 cities contribute 65%, highlighting untapped potential in rural and semi-urban regions. Despite an annual inflow of 30,000 new distributors, net additions remain around 10,000, underlining the need for robust expansion efforts.

The mutual fund sector has grown significantly over recent years, with folios increasing from 2.1 crore in 2019 to 5.6 crore today. With assets under management representing 21% of GDP, compared with over 100% in developed markets, there is substantial headroom for growth. With 80 crore bank accounts across India, the initiative is expected to accelerate financial inclusion, encourage savings, and enhance retail participation in the mutual fund ecosystem.

AMFI’s strategy aligns with India’s broader economic vision, making mutual funds a key instrument for mobilizing domestic savings, boosting investment in the formal economy, and driving financial literacy. By leveraging the reach and trust of India Post, combined with structured training and support, this initiative positions the Indian mutual fund industry to capture untapped markets, particularly in tier II and tier III cities, while ensuring sustainable, long-term growth for investors and the sector alike.

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