How to Become a Mutual Fund Distributor in India?
- Assetplus
- Jul 21, 2023
- 4 min read
Updated: Jul 30, 2024
Table of Content:
Introduction
To become a mutual fund distributor, complete the following steps:
Successfully complete the NISM Series V-A: Mutual Fund Distributors Certification Exam:
Obtain an AMFI Registration Number:
Empanelment with Mutual Funds:
Get the Software You Need to Serve Your Customers:
What Does a Mutual Fund Distributor Get Paid?
Introduction:
To become a mutual fund distributor in India, one must start by clearing the NISM (National Institute of Securities Markets) Certification examination. This examination is mandatory and tests the distributor's knowledge and understanding of mutual funds and the associated industry regulations.
After clearing the examination, the distributor needs to complete the necessary documentation and registration processes with various financial institutions and regulatory authorities. This includes obtaining a PAN (Permanent Account Number), registering with the Association of Mutual Funds in India (AMFI), and opening a separate bank account for transactions related to mutual funds.
Once these initial steps are completed, the distributor must focus on building a strong knowledge base about different mutual funds, their performance, and the investment strategies they employ. This can be done by studying the information available online, attending training sessions and workshops, and networking with other industry professionals.
It is essential for a mutual fund distributor to have a thorough understanding of the investor's financial goals, risk appetite, and investment horizon. This knowledge will help the distributor recommend suitable mutual fund schemes to their clients. Additionally, the distributor should be aware of the various fees and charges associated with mutual funds and be able to explain them to the investors.
Ethics and professionalism are crucial qualities for a mutual fund distributor. They should always prioritize the client's best interests and provide unbiased advice. Maintaining transparency and trust with clients is essential for long-term success in this profession.
To establish a successful mutual fund distribution business, the distributor should focus on building a strong client base. This can be done by networking with potential investors, conducting educational seminars, and promoting their services through various marketing channels.
Overall, becoming a mutual fund distributor requires a combination of knowledge, expertise, ethical conduct, and strong client relationship skills. Continuous learning and staying updated with the latest market trends are also crucial to provide effective investment recommendations.
To become a mutual fund distributor, complete the following steps:
Pass the NISM-Series-V-A: Mutual Fund Distributors Certification Examination.
Obtain your AMFI Registration Number (ARN).
Get immediately enrolled with several mutual funds or join the online mutual fund distribution network Assetplus - click to access the enrollment form.
Learn how to recommend the best mutual fund schemes to your clients.
Discover how to expand your business.
Purchase the software needed to serve your consumers.
Successfully complete the NISM Series V-A: Mutual Fund Distributors Certification Exam:
It is a necessity to pass the "NISM-Series-V-A: Mutual Fund Distributors Certification Examination" in order to become a mutual fund distributor. This assessment is carried out by the National Institute of Securities Market.
The primary goal of this examination is to guarantee that the distributor has fundamental knowledge about Mutual Funds. A certificate issued by the National Institute of Securities Market (NISM) in respect of NISM - Series V-A has a three-year validity period. Pass the NISM series V-A and MFD exams.
Obtain an AMFI Registration Number:
The AMFI Registration Number (ARN) has been introduced as the unique code that identifies the individual distributor as an AMFI Registered Mutual Fund Distributor (ARMFD).
When the NISM exam is passed, the AMFI Registration Number (ARN) is assigned. It is a unique code or ID for each mutual fund distributor. Candidates will receive an Employee Unique Identity Number (EUIN) in addition to their ARN Number. The ARN application process is entirely online and may be found here.
Individual applicants would be provided a photo identity card with a unique ARN, address, his/her name, photo, and the validity duration of the ARN.
Empanelment with Mutual Funds:
After obtaining the AMFI Registration Number (ARN), you must become an authorized representative of each mutual fund business. You can also register with the online mutual fund distribution platform Assetplus (empanelment form).
Assetplus allows distributors to build their businesses in the proper manner without any worry. In addition, the digital environment is very user-friendly and simple to utilize. With Assetplus, the agent may go digital without any investment or overhead to extend their customer base and improve their experience.
Get the Software You Need to Serve Your Customers:
To provide the best possible service to customers, the mutual fund distributor must have the appropriate software or platform. You can either acquire software to manage your business or use Assetplus as your best mutual fund distribution platform in India.
What Does a Mutual Fund Distributor Get Paid?
The mutual fund business in India has grown greatly, and the agents/distributors that work with such platforms are also doing well. Mutual fund distributors profit from commissions on consumer investments.
The commission paid to distributors is in the form of trail commission, which is payable for the life of the investment. If a customer's investment increases over time, so will the commission.
There are numerous options for persons seeking to advance their careers as mutual fund agents. If you have a similar fantasy, you should think about Assetplus.
We not only have strategies for investors, but we also provide possibilities to generate money.
Make contact with us @ +917200286952 to make your dream a reality.
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