All you Need to Know about Becoming a Mutual Fund Distributor in India

 With MF investments on a consistent rise in the country, mutual fund distribution has emerged as a lucrative career option for many. It allows one to be their own boss and earn a handsome living by onboarding clients and helping them invest in mutual fund schemes. If you are also seeking to start an MF distribution business, then you have landed on the right page. Here you will learn everything you need to know to become a mutual fund distributor. So, without any further ado, let us first understand the need for an MF advisor or distributor. 



Need for Mutual Fund Distributors


Investors need MF distributors for a range of reasons. The most significant of these are mentioned below: 


Analyze Financial Health: Mutual fund distributors help their clients understand their current financial health by assessing financial assets, liabilities, income, and expenses. They also take into account future financial obligations to fully comprehend an individual's financial well-being. 


Evaluate Financial Goals: Mutual fund distributors also understand an individual’s investment goals and risk appetite. This facilitates asset allocation in the most suitable investment options.


Formulate a Financial Plan: A MF distributor then creates an investment plan tailored to the client’s financial well-being, and short and long-term goals. 


Help Understand Mutual Fund Investing: MF distributors help their clients understand mutual fund investing, risks involved, returns they can expect from their investments, types of mutual fund schemes, current and future market outlook, etc. 


Analyze Portfolio and Make Adjustments: Mutual fund portfolios demand regular supervision and adjustments as per the ever-evolving market conditions. Mutual fund distributors play a critical role in the same. 


The best mutual fund distributor assumes all these responsibilities and several others. If you are compelled to become a mutual fund distributor, then let’s now can look at the process. 


How to Become a Mutual Fund Distributor 


Starting a mutual fund distribution business involves the below-mentioned three steps: 


Pass the NISM Certification Exam: You begin the process by clearing the NISM Series V-A Mutual Fund Distributors Certification Examination by the National Institute of Securities Markets. The exam has 100 questions and one must score 50 percent marks to obtain the certification. 


Apply for an ARN Number: After clearing the NISM certification exam, you must apply for an ARN number. Also referred to as an ARN code, it is a unique code given by AMFI or the Association of Mutual Funds in India to every individual or organization licensed to facilitate buying and selling of units of mutual fund schemes in India. 


Partner with a Distributor or AMC


The last step is to partner with a major distributor or an asset management company that manages mutual fund schemes. This will allow you to sell mutual fund schemes to your clients and earn a commission. 


A mutual fund distributor in India earns a lucrative commission on all MF investments made by their clients. This involves upfront as well as a trailing commission. So, if you are ready to become a successful mutual fund distributor, then visit the ZFunds website or download the ZFunds mutual fund distributor app and sign up today.


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