Although the independent broker/dealer channel is one of the largest and fastest growing distribution channels for mutual funds, it is a tough one for wholesalers to target, according to a new study issued by Cerulli Associates of Boston.

The independent broker/dealer channel is the second largest distribution channel for mutual funds, accounting for 19% of all fund sales in 2000, compared to national full-service brokers, which totaled 34%. However, taking redemptions into account, independent broker/dealers lead the industry in sales. At the end of 2000, independent broker/dealers represented 29% of net fund flows compared to national full-service brokers, which made up just 19% of net flows.

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