12,000+
Advisors
All
Mutual Funds
1,000+
Locations
1,00,000+
Customers Served
12,000+
Advisors
All
Mutual Funds
1,000+
Locations
1,00,000+
Customers Served
Who are Mutual Fund Distributors?
Mutual fund distributors are also known as mutual fund agents. They are the people or organisations that make it possible for 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 get commission 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 Association of Mutual Funds in India (AMFI).
How to Become a Mutual Fund Distributor?
Here is a step-by-step guide to becoming a mutual fund distributor.1. Pass the NISM Exam - The first step towards becoming a mutual fund distributor is to register and clear the NISM Series V-A Mutual Fund Distributors Certification Examination. The National Institute of Securities Markets – 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 fraud. Moreover, it also helps in recording investments done via a particular mutual fund distributor and calculating the total MDF commission earned through those investments. Every individual or entity that wishes to start its own mutual funds distribution business must apply for an ARN number with the AMFI. This application process includes submission of various documents, the 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 you have to do is partner with AMC Asset Management Companies or fund houses and sell mutual fund schemes. These AMCs or funds will 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 Zfunds and start selling mutual fund schemes of all AMCs.
What is the commission structure for Mutual Funds?
Mutual funds give you an opportunity to build a perpetual income where you continue to earn a commission every year on the investments made through you. This is anywhere between 1-2% annually. We also have a one-of-a-kind incentive scheme to boost your income.
Can I offer any other products via ZFunds to my clients?
Currently, you can offer only Mutual Funds with us. But in the next 3 months, you will have a full suite of investment and insurance products that you can offer to your clients.
