Mutual Fund Distribution Business Advantages

 The mutual funds industry in India is growing at a lightning pace, and this presents a wonderful career opportunity for you. Become a mutual fund distributor and make a fantastic living with the commissions you earn on your clients’ investments. Here are some of the reasons why you should really consider starting an MFD business. 

You are your Own Boss


MFD business gives you the freedom that no job can offer. You can work at any time and from any place. All you need to do is onboard clients and help them buy and sell units of mutual fund schemes. That’s it! And you will earn commission. 


Financial Freedom 


Now you may think that mutual fund distribution business is only a good passive income option. But that is where most people go wrong! Mutual fund distribution can earn you hefty commission that would suffice as your primary earning source. Thus, you enjoy financial freedom in your life. 


Here are some responsibilities of a MF distributor to help you understand the work better. 

  • Elucidating potential clients about the effectiveness of mutual fund investments in creating wealth over a long period of time and as a hedging tool against inflation. 

  • Educating clients about the myriad mutual fund investment schemes available in the market. 

  • Facilitating transactions of buying and selling of mutual fund units. 

  • Analyzing their risk-taking capacity and suggesting suitable mutual fund schemes.

  • Guiding clients on the performance of their mutual fund portfolios and helping the optimize the same over time with changing economic conditions. 


How to Start your MFD Business


Here are the simple steps involved in becoming a mutual fund distributor. 

Clear the NISM Certification Exam: The process begins with registering for and clearing the NISM Series VA Mutual Fund Distributor exam. 

Apply for ARN Number: Once you have cleared the exam, then you must apply for an ARN or AMFI Registration Number provided by AMFI or the Association of Mutual Funds in India. 

Register with AMCs: After obtaining your ARN code, you can register with major distributors or AMCs (asset management companies) to start selling mutual fund schemes to your clients. 


So, if you are ready to sprint towards financial freedom, then start your CAMS online distributor business today. 

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