Distribution on WebNotes

Direct plan adoption in India

Sat, 16 May 2026 00:00:00 +0000

The direct plan adoption trajectory in India describes the multi-phase structural shift in Indian mutual fund distribution since the SEBI January 2013 mandate requiring every open-ended scheme to offer a separate direct plan alongside the conventional regular plan. Direct plans, available exclusively to investors who transact without a distributor or broker intermediary, carry a lower Total Expense Ratio (TER) than the corresponding regular plan because no distribution commission is embedded. The structural growth of direct plans, from approximately 21 per cent of industry AUM in March 2016 to over 50 per cent by late 2025 and approximately 57 per cent by April 2026, is among the most consequential changes in the Indian mutual fund distribution landscape in the post-liberalisation era. The adoption has reshaped distribution economics, enabled a viable market for fee-based registered investment advisers (RIAs), and catalysed the rise of zero-commission digital platforms that have collectively acquired tens of millions of retail investors.

SEBI Execution-Only Platform framework of 2023

Sat, 16 May 2026 00:00:00 +0000

The SEBI Execution-Only Platform (EOP) framework of 2023 is the regulatory framework introduced by SEBI Circular SEBI/HO/IMD/IMD-POD-1/P/CIR/2023/74 dated 12 July 2023 that formalises the regulatory status of online platforms providing execution-only access to direct-plan mutual fund transactions, without providing investment advice. The framework was a response to the structural ambiguity that had existed since the SEBI January 2013 direct plan mandate , under which a generation of commercial digital platforms (Groww , Kuvera , ET Money , INDmoney , Zerodha Coin , Paytm Money) had collectively acquired tens of millions of retail users for direct-plan investing without a clear regulatory category. The 2023 framework defines two EOP categories with distinct registration routes and produces a clear regulatory safe harbour for the direct-plan execution-only model.

Mutual fund aggregator portal landscape in India

Tue, 12 May 2026 00:00:00 +0000

The mutual fund aggregator portal landscape in India encompasses the range of digital platforms that allow investors to access mutual fund schemes from multiple AMCs through a single interface, as distinct from investing directly through an individual AMC’s portal. Aggregator platforms represent a significant share of mutual fund transaction volumes in India and have been the primary channel through which direct-plan investing has grown since the SEBI direct-plan mandate of January 2013.

Mutual fund distributor (intermediary role)

Tue, 12 May 2026 00:00:00 +0000

A mutual fund distributor (MFD) in India is an individual or entity registered with the Association of Mutual Funds in India (AMFI) under the AMFI Registration Number (ARN) system, authorised to distribute mutual fund schemes to investors and receive trail commissions from asset management companies (AMCs). MFDs are the primary channel through which the majority of Indian mutual fund assets under management (AUM) is held, serving retail investors, HNIs, and corporate clients through regular-plan schemes across equity, debt, hybrid, and passive fund categories.