A Step by Step Guide to Become a Mutual Fund Distributor

 Mutual fund investments are skyrocketing in India. While these investments are a good way of earning money, another way to make a living through mutual funds is by becoming a distributor. You can earn thousands of bucks as a mutual fund distributor commission simply by facilitating buying and selling of mutual funds units for investors. If you are intrigued by this marvellous career opportunity, then here is a step by step guide to how you can become mutual fund distributor.

Clear the NISM Exam 

NISM or National Institute of Securities Markets is a public trust established by SEBI. The organization offers various courses for people looking to have a career in the securities market. The certification exam for becoming a registered mutual fund distributor in India is called NISM Series V-A Mutual Fund Distributors Certification Examination. And, clearing it is the first step towards becoming a mutual fund distributor. You must score at least 50 percent marks to pass the exam and move on to the next step. 

Submit the ARN Application Form

Once you have cleared the NISM Series V-A Mutual Fund Distributors Certification Examination, then you can apply for an ARN number. Short for AMFI Registration Number, ARN is a unique code assigned to every registered mutual fund distributor in India. The number performs several functions for the benefit of mutual fund distributors as well as investors. For instance, it helps in tracking transactions and calculating the commissions of distributors. It also safeguards investors by ensuring the credibility of the distributor they are dealing with. You can submit your ARN application form with the AMFI or Association of Mutual Funds in India, along with the requisite fee and essential documents. 

Register with an Asset Management Company or Distributor

Upon receiving your AMFI Registration Number, you can move on to the next step to become mutual fund distributor – which is registering with an Asset Management Company (AMC) or distributor. Once this is done, you can start selling units of mutual fund schemes to investors. 

Mutual fund distributors perform a variety of functions. For instance, they are responsible for preparing comprehensive reports on mutual funds, educating potential clients about mutual fund investments, assisting clients in choosing the best MF scheme for them, etc. For all of this, they earn mutual fund distributor commission. If you think you have what it takes, then become a mutual fund distributor today.

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