How to Become a Mutual Fund Agent
How to become a Mutual Fund Distributor or Agent in India in 3 Simple steps?
A mutual fund advisor's purpose is to assist clients to increase or maintaining their wealth and achieving financial goals using mutual funds. Investors' investment perspectives, risk tolerance, and financial goals are assessed by MF advisors. A mutual fund investment advisor might earn commissions directly from fund houses or indirectly through distributors. Mutual fund advisors have experience in both selecting and putting together a portfolio of mutual fund schemes that are aligned with investors' financial objectives. This necessitates the MF advisor taking the initiative to monitor a wide range of mutual funds schemes with various investment objectives, as well as stay up to date on key financial market events that may affect the performance of these schemes.
The Steps to Becoming a Mutual Fund Distributor or Agent In order to become an MF Agent, just follow these simple steps:
1. Enroll for the NISM exam Individuals interested in becoming mutual fund advisors should first register for the National Institute of Securities Market's (NISM) VA Mutual Funds Distributors Certification Exam. This can be done by logging into the NISM's official website and paying a ₹1500. registration fee. One's test will be conducted at NISM centers that have been verified by the National Institute of Standards and Technology. After successfully registering, the candidate can obtain a PDF file that will assist them in preparing for the exam. Additionally, one can study using printed textbooks or online course materials.
2. Clear the NISM Exam If the aspiring mutual fund advisor passes the NISM exam, they will be certified as a mutual fund advisor. This certificate will be accessible in paper copy about 30 days after their test results are released, however, it can be obtained immediately in e-format as test results are ready. The certificate is valid for three years from the exam date. The CPE Program likewise has a three-year validity period. The study material is available here and all questions are generally asked from this workbook.
3. Recognize Your Distributor After passing the exam and becoming certified, the candidate must go through a Know Your Distributor process. This will occur when they apply to the Association of Mutual Funds in India (AMFI) for an AMFI Registration Number (ARN) in order to begin selling or advising on mutual fund schemes in India. The candidate must enter their PAN, NISM Distribution certificate number, Identity details, and other information into the ARN application form. All completed forms must be filed to CAMS-KRA (KYC Registration Agency), either physically in a CAMS office or electronically, as required. Once the documents are properly confirmed, the candidate (who is now a mutual fund agent) will be assigned an ARN number, and their card will be delivered to the location described in their application within a few days.
4. Enroll with AMCs or Distributors After obtaining their ARN number, the mutual fund agent is now a full-fledged MF advisor. They are now able to begin selling to clients and earning commissions. The next step is to enter into distribution agreements with AMFIs to sell these funds. Distributors are paid a commission based on the number of mutual fund schemes sold by the advisor. The advisor may also enter into agreements with fund houses or AMCs directly, rather than through distributors, to sell mutual funds.
conclusion Becoming a mutual funds advisor is a well-earned job due to the plethora of roles MF advisors play. They monitor risk in portfolios, assess their clients' financial objectives, and carefully track funds they can select for them. The path to becoming a mutual fund investment advisor is simple and well-defined. If you have NISM accreditation and an ARN number, you can work as a mutual fund distributor or seller in India.