In a bold and much-needed step toward financial inclusion, the Association of Mutual Funds in India (AMFI) and India Post have partnered to train postmen as mutual fund distributors, bringing investment access closer to India’s hinterland. This move aims to bridge the urban–rural divide in capital markets, deepen mutual fund penetration, and empower citizens in remote areas to become investors.
Why this partnership matters
AMFI (Association of Mutual Funds in India) is the industry body representing asset management companies (AMCs) in India. Its mandate is to promote the mutual funds industry, encourage investor education, set ethical and professional standards for distributors, and aid in improving distribution reach.
And India Post/Department of Posts (DoP) being the national postal service of India, has a vast network of post offices (over 160,000) and postmen who reach into every nook and corner — including rural and remote parts of the country. This makes the postal network one of the most trusted institutions in many regions.
This initiative aims to enhance mutual fund penetration in underserved smaller towns and cities across India. By combining AMFI’s know-how in mutual fund distribution and investor education with India Post’s extensive last-mile network, the partnership aims to plug a major gap: many rural and small-town citizens lack access to mutual funds simply because there is no local distributor or advisory presence.
How the programme works
The MoU between AMFI and DoP was signed during AMFI’s 30th foundation day, and is valid for three years (until August 2028) in the first instance. The pilot rollout is focused on four states: Andhra Pradesh, Bihar, Meghalaya and Odisha. It targets training around 1 lakh postmen to become certified mutual fund distributors, with the goal to have at least 10 trained distributors per district in pilot states by the end of the first year, and a medium-term goal of 20 per district.
The long-term plan is to train 20,000 new distributors, impart training to college students in the pilot states, and create a larger group of trainers who can “train the trainers.” The overarching goal of the programme is to improve and strengthen last-mile access to investment products and improve financial literacy in smaller towns and rural areas.
Postmen will first undergo special training (likely covering the fundamentals of investing and mutual fund products, along with risk profiling, compliance and KYC) and will have to pass an NISM (National Institute of Securities Markets) certification to become authorised distributors. India Post will also enable its post office staff to collect documents and perform KYC verification for investors, serving as the physical touch point in mutual fund onboarding. In effect, postmen and India Post together will act somewhat like “relationship managers” or financial ambassadors in rural areas, combining their local reach and trust with financial product distribution capabilities.
How the AMFI-India Post partnership will benefit investors and the MF industry
This partnership between AMFI and India Post addresses several problems in India’s mutual fund distribution and financial inclusion:
- Bridging distribution gaps: Many small towns and villages lack mutual fund distributors or financial advisors. Even if people want to invest, they may not know where to go or whom to trust. By using postmen — already embedded in the community — access is brought closer to the doorstep.
- Trust and credibility: Postmen are often trusted figures in their communities. Leveraging this trust is more effective than pushing products via unfamiliar agents. This reduces trust barriers that many rural savers have toward financial institutions.
- Boosting investor education and financial literacy: The programme can serve as a vehicle for investor education in areas where awareness is low. As postmen engage households, they can explain investment benefits, risk tradeoffs, and how mutual funds can fit into financial goals.
- Lowering the cost of distribution: Traditional distribution in remote areas is expensive (travel, network infrastructure, maintenance). Using existing postal infrastructure and workforce can reduce marginal costs of reaching last-mile investors.
- Increasing mutual fund penetration and deepening capital markets: India’s mutual fund penetration is still low relative to global peers. Expanding the investor base into Bharat (beyond metro areas) is essential for long-term growth of the domestic capital market and reducing concentration risk. The MF industry gains access to a much larger potential investor base in smaller towns and villages, a broader base beyond urban India for consistent inflows, and can expand reach without building expensive new branches or field teams.
The collaboration between AMFI and India Post to convert postmen into mutual fund distributors is an innovative (and much-needed) push toward inclusive investing in India. By leveraging the postal network’s reach and trust, this programme has the potential to lower the barriers to access, educate new investors, and expand the mutual fund investor base in rural and underserved areas.
Sources
Big Move To Boost Mutual Fund Access, 1 Lakh Postmen To Be Trained
Indian Mutual Funds industry begins a big new push with four states as testing grounds | IBEF