How to Become Mutual Fund Advisor

Preface: This post was originally published in 2023 and has been updated on August 26, 2025, to provide you with the most current and accurate information.

The mutual funds industry is made up of various professionals and entities, including fund managers, asset management companies and more. Among these, one of the most indispensable roles is that of a mutual funds advisor. They offer ‘incidental advice’ to their clients by offering factual information about MF products, their main features, risks, advantages and so on, to help investors make goal-based investments. If you are planning to become a mutual funds advisor, we recommend you to go through this blog post.

Who is a Mutual Fund Advisor?

A mutual fund advisor, also known as a mutual fund distributor, is a qualified professional who helps investors to make the right decision for investing in mutual funds. They guide their clients regarding the mutual fund schemes so they can eventually sell such schemes to them. However, their guidance is basic guidance. They are restricted from providing personalized financial advice or creating detailed financial plans since the MFD license does not permit these things. The mutual fund advisors are governed by SEBI MF Regulations and the circulars issued thereunder. 

The process of becoming a mutual fund investment advisor is straightforward. As per the rules of the Association of Mutual Funds in India (AMFI) guidelines, to become an MF advisor, one needs to clear the NISM series V-A: Mutual Fund Distributors Certification, and get an ARN number. 

After passing the exam for an MF advisor, you need to obtain an ARN (AMFI Registration Number) by approaching AMFI. Once you clear the exam, you will get the AMFI number and card at your registered address within a few days. 

The source of earnings of MFAs is in the form of a commission for each MF product they distribute. The mutual fund advisor commission is provided by the fund house. MF advisors cannot charge a fee for offering advice.

Process to Become a Mutual Fund Advisor

To become a mutual funds advisor, follow the below steps:

Step 1: Registering for the NISM Exam

Login into the NISM portal and apply for the NISM Series VA MF Distributors Certification. Pay the prescribed examination fees for the mutual funds advisor exam. This exam will be conducted by the National Institute of Securities Market.

Once the registration gets complete, the applicant can download a PDF to prepare for the exam, also you can purchase a hard copy of the study books from the books store or e-commerce websites.

Step 2: Mutual Funds Advisor Examination

The candidate can give the exam from their home online mode, after completing the exam the result will appear on the screen. The applicant can download the result in the e-format of the certification from the NISM website. 

The hard copy of the certificate will be delivered to the mentioned address within 30 days. The validity of the mutual funds advisor certificate is 3 years from the date of passing the exam.

Step 3: Obtaining the ARN

Once the candidate clears the exam, they have to undergo the mandatory Know Your Distributor (KYD) process. And apply for obtaining an AMFI Registration Number (ARN) before selling or advising the clients about mutual funds plans. Provide the details such as PAN number, NISM Distribution Certificate Number, and other details in the application. 

After the approval of an application, the ARN number will be provided to the applicant. Also, their card will be delivered to the registered address within a few days. The fee to get the ARN number is Rs. 3000 (+ additional 18% GST).

Step 4: Register with Distributor or AMC

After receiving the ARN number, you can start selling MFs and earn a commission. Now you have to sign an agreement with an AMFI distributor to sell MF. To sell the MF products as a distributor, the MF advisor can directly enter into an agreement with AMC or a fund house. It is always better to connect with the distributor as it avoids hassle of the registration and documentation.

Educational Qualification and Age Limit

To apply for ARN with AMFI, the individual applicant must be at least 18 years of age and possess a valid NISM certificate for having passed NISM Series V-A: MFD Certification Examination. There is no limit on the maximum age.

If the candidate has a degree in finance, economics, or investment, then it will be helpful for the advisor to make a good start in the industry. However, it isn’t a mandatory requirement.

Conclusion

An MF advisor is a reputable job in the MF industry. They work on a commission basis and recommend to the clients a curated list of MF schemes based on the assessment of the investor's risk profile and suitability of the product being recommended and help the investor in making the right choice. However, they cannot offer personalized, fee-based investment advice like a SEBI registered investment advisor. To become an MF advisor in India, you must apply for the NISM examination, clear it with passing marks and then obtain an MFD license from AMFI. 

Frequently Asked Questions (FAQs)

Q1. Can an individual possessing an MFD license offer personalized mutual fund advisory services?

A. No, an individual, possessing only an MFD license, cannot offer personalized mutual funds advisory services. For personalized advice, they must secure a separate SEBI RIA license.

Q2. Which Institute conducts exam for mutual fund advisor?

A. The National Institute of Securities Markets, abbreviated as NISM, conducts the mandatory examination for MF advisors. This exam is known as the NISM Series V-A: MFD Certification Examination.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.