To begin our investigation, we explore the physical and non-physical elements impacting mutual fund distribution and penetration in India. We have collected qualitative and quantitative data from fund managers on the characteristics and factors influencing their geographic presence in the nation using a questionnaire survey. Studies have shown that distribution channels, such as mutual fund companies, have a major influence on fund penetration, which is why it may be more productive to approach growing fund penetrationby focusing on raising financial literacy instead.