If you are passionate about finance and looking to make your career in the said domain, becoming a mutual fund distributor could be a wonderful way to give a solid thrust to your career. Yes, with the rapid penetration of mutual fund investments all across the nation, there has been a strong demand for mutual fund professionals who can act as an intermediary between the investors and the stock markets while providing valuable suggestions related to mutual funds to investors to help them make the right investment decision.
The surging investment in mutual fund has propelled the need of skilled and committed mutual fund distributors in India. So, this field of finance and investment has immense potential that can be tapped by youngster who are looking towards a promising career.
Making a career in mutual fund distribution means you will be helping investors with the right financial information about a mutual fund, presenting facts and figures that are easy to understand, handling documentation, managing mutual fund portfolios, and others.
Also called a mutual fund agent, a mutual fund distributor is a person who can be held accountable for the investment of his investors’ money in mutual funds available in India. Since mutual fund distributors introduce and recommend investors to a specific mutual fund, they get a small commission from the mutual fund company. The primary tasks of a mutual fund distributor are:
To become a mutual fund distributor, you would have to obtain a mutual fund distributor license which authorizes a person to work as a mutual fund distributor. Below is the process to obtain the license.
Step 1: Appear in the NISM Series V-A: Mutual Fund Distributors Certification examination which is organized by SEBI. After you clear the said exam, the certification remains valid for 3 years.
Step 2: If you clear the said exam, you will get an ARN number that permits you to sell mutual fund schemes to people. You will also be entitled to get a EUIN (Employee Unique Identification Number).
Step 3: After the receipt of the ARN from AMFI, you would have to get listed with an AMC. For that, you have to visit AMC’s website and obtain the required details. The AMC will furnish you with the sales stuff and scheme-associated documents that you can use to gain your knowledge. For non-individual distributors, it is necessary for every member to get the ARN and EUIN numbers.
The procedure for Know Your Distributor is similar to the procedure of Know Your Customer. You are expected to register with AMFI with proper documentation and biometrics
The required documents are:
If you are looking to become a mutual fund distributor by seeking a mutual find distributor license, the aforementioned information would be of immense help. However, for better guidance and applicant support, you can contact our team of experts at Registrationwala.
Also read: The Role of Mutual Fund Distributors in Investment Management