Why choose ZFunds as a Mutual Fund Distributor Platform ?
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.Get Started
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.
Frequently Asked
Who are Mutual Fund Distributors?
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 .
How to Become a Mutual Fund Distributor?
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:
What are the Qualifications to Become a Mutual Fund Distributor?
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:
What are the Skills Required to Become a Mutual Fund Distributor?
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:
Equipped with these skills, a mutual fund distributor can effectively market mutual funds, provide valuable investment advice, and build a successful distribution business.