Become a Mutual Fund Distributor today !

FREE mutual funds distributor license payen from ZFunds worth Rs. 5,040/-

Why choose ZFunds as a Mutual Fund Distributor Platform ?

World-class Client App with Industry-best Features
Earn Highest Mutual Fund Commission Payout Guarantee
Experienced & Certified Relationship Manager available for you 24*7
Direct access to the best research team
ZERO COST - Online & Offline Marketing Support to Grow Your Business
Fastest growth to 100 clients with lowest effort- work just 1 hour a day
Manish Kothari
CEO ZFunds

How do we guarantee Platinum rates?

We are able to give you these platinum rates because we operate nationally at a large scale and get a higher commission from Mutual Fund Companies than individual advisors.

Our entire operations including KYC and transactions are digital and done on the ZFunds App. This ensures a lot of cost saving for us. Which we pass on to you.
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Manish Kothari
CEO ZFunds
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Frequently Asked

Mutual fund distributors are also known as mutual fund agents. They are the people or organizations that enable investors to purchase and sell units of various mutual fund schemes . They act as a bridge between investors and Asset Management Companies (AMCs), for which mutual fund distributors earn commissions from AMCs. They provide essential advice on the best mutual fund options based on the client's financial goals, risk tolerance, and investment horizon. They follow the rules set by the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI). However, unlike other fund managers who directly manage the money within the funds, distributors don’t handle the actual investments themselves. Instead, they guide investors in their financial journey.

These mutual fund distributors also perform a variety of other services, such as understanding each investor's risk tolerance and financial objectives, as well as recommending suitable investment alternatives and strategies. However, before starting a business, every person or organization that wants to distribute mutual funds in India must register with the AMFI .

Becoming a mutual fund distributor offers several benefits and can be a rewarding career choice for those interested in the financial services industry. So here is the complete detail of how you can become a mutual fund distributor.

Steps to Become a Mutual Fund Distributor

1.) Pass the NISM Exam

The first step towards becoming a mutual fund distributor is registering for and clearing the NISM Series V-A Mutual Fund Distributors Certification Examination . The National Institute of Securities Markets (NISM) – a public trust established by the Securities and Exchange Board of India (SEBI) in 2006 – conducts the exam.

NISM charges a small fee for registering for the examination. A candidate must score at least 50 percent marks to clear the exam.

The test consists of 100 questions of one mark each. For NISM VA exam preparation, you can download a free NISM VA mock test.

2.) Apply for an ARN Number

The second step is to apply for an ARN Code or number that performs several functions for investors as well as mutual fund distributors. For instance, it safeguards investors by ensuring the credibility and traceability of mutual fund distributors in case of scams or frauds. Moreover, it also aids in recording investments made via a particular mutual fund distributor and calculating the total MFD commission earned through those investments. Every individual or entity that wishes to start their own mutual funds distribution business must apply for an ARN number with the AMFI. This application process includes submission of various documents, Know Your Distributor process, and more. You can visit our dedicated page on ARN number to know more about these unique identification codes.

3.) Register with a Distributor / AMC

Once you have completed the AMFI registration process and obtained your ARN number, you can start distributing mutual fund schemes to investors and earning a commission. All that is left to do is enter into agreements with AMFI distributors and sell these funds. These AMFI distributors pay a commission as per the agreement, based on the quantity of mutual fund schemes the distributor sells. In addition, the distributor can also partner with Asset Management Companies (AMCs) or fund houses and sell mutual fund schemes.

4.) Work Profile of Mutual Fund Distributor / Advisor

As mentioned above, selling mutual funds to investors may appear to be the entire job, but that is only a part of being a mutual fund distributor. Here are the myriad tasks that MF distributors carry out:

  • Follow the securities market trends to provide reliable investment advice to investors.
  • Stay up-to-date on the upcoming mutual fund schemes by keeping in touch with mutual fund managers. The financial expert should also prepare reports on the past and future (expected) performance of different sectors.
  • Prepare comprehensive reports on various mutual funds and their schemes.
  • Approach potential clients and discuss investment opportunities with them.
  • Educate these potential clients on mutual funds, schemes, returns, risks, charges, and other aspects of mutual fund investing.
  • Help them figure out the most appropriate mutual fund investment option for them based on their risk profile.
  • Assist these clients in investing in mutual fund schemes of their choosing.
  • Follow up with these clients about their mutual fund investment journey and clear out any doubts.
  • Provide timely advice to help minimize risk and maximize returns from investments.

For mutual fund distributors, there are no specific educational requirements mandated by regulatory bodies. However, certain qualifications can greatly enhance their effectiveness and credibility in the field. Here are some qualifications that can benefit mutual fund distributors:

  • Age: To become a mutual fund distributor, an individual must be at least 18 years old and have completed their education up to the 12th grade, or the 10th grade followed by a three-year diploma.
  • Regulatory Certifications: In India, MF distributors are required to obtain certifications such as the NISM Mutual Fund Distributor Exam Certification . This certification ensures that distributors possess a basic understanding of mutual funds, their functioning, and the regulatory framework surrounding them.
  • Financial Industry Knowledge: A strong foundation in financial concepts and the investment industry is essential for a distributor in mutual funds in India. They should have a comprehensive understanding of different types of mutual funds, asset classes, risk management, taxation rules, and investment strategies. Keeping up to date with market trends, economic indicators, and regulatory changes is crucial.
  • Professional Qualifications: While not mandatory, having professional qualifications such as a degree or diploma in finance, economics, or business can provide a solid foundation for mutual fund distributors. Certifications like Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), or other relevant designations can demonstrate a higher level of expertise and credibility. These can also help you earn a higher mutual fund distributor salary.
  • Sales and Communication Skills: Mutual fund distributors need excellent communication and interpersonal skills to effectively interact with clients. They should be able to explain complex investment concepts in a simple and understandable manner. Strong sales and negotiation skills are also vital to building relationships, attracting new clients, and retaining existing ones.
  • Analytical Abilities: NISM mutual fund distributors should possess analytical skills to assess clients' financial goals, risk tolerance, and investment horizons. They need to analyze mutual fund schemes, evaluate their performance, and match them with the appropriate investor profiles. This requires the ability to interpret financial data, evaluate fund documents, and make informed investment recommendations.
  • Ethical Conduct: Mutual fund distributors in India should adhere to high ethical standards and act in the best interests of their clients. They must understand and comply with regulatory guidelines, including know-your-customer (KYC) norms and anti-money laundering (AML) regulations. Maintaining transparency and honesty in their dealings is crucial to building trust with clients.

Becoming a mutual fund distributor requires a blend of skills to effectively market mutual funds and assist clients in making informed investment decisions. Here are the key skills needed:

  1. Financial Acumen: A strong understanding of financial markets, mutual fund products, and investment strategies.
  2. Regulatory Knowledge: Familiarity with financial regulations, compliance requirements, and industry standards. Passing the NISM Series V-A (Mutual Fund Distributors Certification Examination) is essential.
  3. Sales and Marketing Skills: Proficiency in sales techniques to attract and retain clients, including understanding client needs, pitching suitable products, and closing sales.
  4. Communication Skills: Ability to explain complex financial concepts clearly to clients. Strong verbal and written communication skills are crucial.
  5. Customer Service Orientation: Focus on building and maintaining strong client relationships through personalized service, timely follow-ups, and effectively addressing queries.
  6. Analytical Skills: Ability to assess market trends, evaluate mutual fund performance, and make data-driven recommendations.
  7. Negotiation Skills: Capable of negotiating terms with clients and fund houses to ensure mutually beneficial agreements.
  8. Ethical Standards: Upholding high ethical standards to act in the best interests of clients, ensuring transparency and trust in all transactions.
  9. Technology Proficiency: Familiarity with financial software, investment platforms, and digital tools for efficient transactions and client communication.
  10. Networking Skills: Ability to build and expand a network of clients, industry contacts, and relationships with fund houses.
  11. Problem-Solving Skills: Capability to address client issues, resolve conflicts, and provide solutions aligned with client goals.
  12. Time Management: Efficiently managing time to balance client meetings, ongoing education, administrative tasks, and sales activities.


Equipped with these skills, a mutual fund distributor can effectively market mutual funds, provide valuable investment advice, and build a successful distribution business.

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