The Ultimate Guide to Making Your Career as a Mutual Fund Distributor

If you are passionate about finance and looking to make your career in the said domain, becoming a mutual fund distributor could be a wonderful way to give a solid thrust to your career. Yes, with the rapid penetration of mutual fund investments all across the nation, there has been a strong demand for mutual fund professionals who can act as an intermediary between the investors and the stock markets while providing valuable suggestions related to mutual funds to investors to help them make the right investment decision.

The surging investment in mutual fund has propelled the need of skilled and committed mutual fund distributors in India. So, this field of finance and investment has immense potential that can be tapped by youngster who are looking towards a promising career.

Making a career in mutual fund distribution means you will be helping investors with the right financial information about a mutual fund, presenting facts and figures that are easy to understand, handling documentation, managing mutual fund portfolios, and others.

Who is a mutual fund distributor?

Also called a mutual fund agent, a mutual fund distributor is a person who can be held accountable for the investment of his investors’ money in mutual funds available in India. Since mutual fund distributors introduce and recommend investors to a specific mutual fund, they get a small commission from the mutual fund company. The primary tasks of a mutual fund distributor are:

• Suggest mutual funds to investors
• Helps with the documentation and other formalities needed for mutual funds investment
• Stay updated with the latest information related to mutual funds and the stock market
• Compare the performances of different mutual fund schemes
• Establish a healthy and lasting relationship with investors to help them with other investments
• Help mutual fund companies expand their customer base

How you can become a mutual fund distributor?

To become a mutual fund distributor, you would have to obtain a mutual fund distributor license which authorizes a person to work as a mutual fund distributor. Below is the process to obtain the license.

Step 1: Appear in the NISM Series V-A: Mutual Fund Distributors Certification examination which is organized by SEBI. After you clear the said exam, the certification remains valid for 3 years.

Step 2: If you clear the said exam, you will get an ARN number that permits you to sell mutual fund schemes to people. You will also be entitled to get a EUIN (Employee Unique Identification Number). 

Step 3: After the receipt of the ARN from AMFI, you would have to get listed with an AMC. For that, you have to visit AMC’s website and obtain the required details. The AMC will furnish you with the sales stuff and scheme-associated documents that you can use to gain your knowledge. For non-individual distributors, it is necessary for every member to get the ARN and EUIN numbers.

Eligibility Criteria For A Mutual Fund Distributo

• The age of the applicant must be at least 18 years.
• The candidate must have passed either class 12 or class 10 combined with three years of diploma.
• To become a mutual fund distributor, the applicant needs to clear the mutual fund distributors’ certification examination:
• NISM Series V-A. SEBI has made it mandatory for applicants seeking mutual fund distributor licenses.
• After clearing the NISM certification test, the applicant will be provided an AMFI Registration Number (ARN). This ARN
• is supposed to make the person eligible to be listed under AMFI as a mutual fund distributor.
• Apart from ARN, the applicants would also be eligible to get an Employee Unique Identification Number (EUIN).
• The NISM certification remains lawful for nearly 3 years from the date of examination.
• Please note that no mutual fund distributor should have more than one ARN card or letter of registration
• Once the applicant gets the ARN, he must visit the AMCs website for empanelment after which he would be entitled to promote mutual fund schemes of these AMCs.
• The registered distributors must need to be aware of the fact that they can be disqualified as the final criticism in the following cases:
  • In case of violation of the code of conduct.
  • If the distributor is being accused of grave crimes as per the regulatory authority.
  • In case of gross neglect complaint sustained by a consumer court.
• For a senior citizen who wants to become a mutual fund distributor or an agent, it is necessary for him or her to pursue the Continuing Professional Education training module also known as the CPE program. After clearing the CPE program, the candidate shall furnish the required documents and apply for ARN.

How the registration of mutual fund distributors is carried out?

The procedure for Know Your Distributor is similar to the procedure of Know Your Customer. You are expected to register with AMFI with proper documentation and biometrics

The required documents are:

• PAN card
• Identity proof
• Address proof
• Bank account information
• Biometrics

The Conclusion

If you are looking to become a mutual fund distributor by seeking a mutual find distributor license, the aforementioned information would be of immense help. However, for better guidance and applicant support, you can contact our team of experts at Registrationwala.

Also read:  The Role of Mutual Fund Distributors in Investment Management

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.