What role does mutual fund distributor have?

 Mutual fund distributors are qualified professionals, individuals or institutions who advise investors in making mutual fund investments. They provide tailor made and investor specific advice to the investors seeking help after analysing their goals, investment tenure and risk appetite among other things. They would make money in the form of commissions and brokerage from the fund house or distributor on the sale of mutual funds. 


These advisors offer their knowledge and expertise in designing a portfolio of mutual fund schemes aligning with the vision and goals of the investor. This requires mutual fund agents to track the performance of various mutual fund schemes with various investment goals and objectives along with updates of key events in the markets that can possibly affect the scheme performance. 


As per the Association of Mutual Funds in India, for becoming such a distributor or advisor, one needs to clear and pass the mandatory NISM series VA certification exam and procure an ARN number. 


The key role of MF advisors include:

  1. Designing an ideally diversified portfolio 

  2. Analysing various investment options 

  3. Maintaining records related to finance

  4. Evaluating investor’s risk appetite 

  5. Education the investors 

  6. Understanding financial needs  

Mutual Fund Advisors also operate through the online mode through an investment platform wherein the investors can also explore different options & invest as per their requirements. The best mutual fund advisors in India have good online presence as it can’t be ignored in today’s rapidly growing digital economy. 

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