How do I start a career as a mutual fund distributor?

If you have a deep interest in the financial market and are keen to learn how to make money grow, why not make a career as a mutual fund distributor. In order to become a mutual fund distributor. You can either work as an independent mutual fund distributor or join a trusted brand in BFSI. With a reliable brand you can thrive your business without any hassle. To become an independent distributor you

need to meet the specific eligibility criteria and acquire the license to distribute mutual funds. However with a notable brand, you can also join as a mutual fund agent with minimum eligibility. After completing a simple onboarding process, you get all types of marketing and training support to sell the MFs.

A mutual fund distributor works as a connection between the investors and the Asset Management Companies. The mutual fund distributors in India are regulated by Association of Mutual Funds in India (AMFI) and the Securities and Exchange Board of India (SEBI).

The role of mutual fund distributors and agents is to help the investors understand the various mutual fund schemes in India. They also act on behalf of the investors and facilitate the sale and purchase of mutual funds and redemption of their investments. A mutual fund distributor is paid for their service and earns through commissions. The mutual fund distributors help the clients go through the complicated documentation and KYC requirements and keep their personal details safe.

Who can become a mutual fund distributor

The eligibility for a mutual fund distributor is to be at least 18 years old. They should have passed the 10+2 examination from an accredited board or university. In order to work as an independent mutual fund distributor, one needs to qualify the NISM-Series V-A: Mutual Fund Distributors Certification Examination.

6 steps to become a mutual fund distributor

Here is the process to become Mutual Fund Distributor for individuals —

1. Register for the NISM-Series V-A Examination
   Qualifying the NISM-Series V-A certification examination is the first step to becoming a mutual fund distributor. This eligibility test makes sure that the candidate has the required knowledge, aptitude and skills to work as a guide for the potential investors in the mutual fund market. Conducted by the National Institute for Securities Markets, the passing certificate for NISM-Series V-A is valid for three years.
2. Prepare and pass the NISM examination

In order to prepare for the NISM exam, you need to understand the syllabus thoroughly. The syllabus for the exam is quite vast and covers topics, such as the fundamentals of mutual funds, how they work, the various schemes in the Indian market, the legalities of mutual funds, mutual fund valuation, and investor services.

1. Complete the KYD (Know Your Distributor) process
   The Association of Mutual Funds in India has made it mandatory for all the mutual fund agents to undergo a verification process called Know Your Distributor (KYD). This background check validates the credentials of the mutual fund distributor and ensures there is transparency to protect investors’ interests.
2. Apply for an AMFI Registration Number

After the KYD process is successfully complete, you need to apply for the ARN or AMFI Registration Number. ARN is a unique number that establishes the identity of the mutual fund distributor. It is your license to officially work as a mutual fund distributor..

1. Get on the panel of mutual fund organisations
   Now you can start working as an authorised mutual fund agent. Empanel yourself with the mutual fund organisations operating in the Indian market. Fill out the forms with the mutual fund companies by filling out forms, either online or offline. You will be required to submit some important documents. After all the formalities are done, you would have to wait for it to get approved and work as a mutual fund distributor.
2. Market your services

After you are empanelled with one or a few mutual fund distributors, it is time to market your services. You can start meeting your target customers face-to-face and also market your services on social media or the internet. As a mutual fund distributor, work towards success by building a strong client base and establishing yourself in the industry as a trustworthy mutual fund distributor.