How to become a Mutual Fund Advisor


Mutual Fund Advisors

Intro - Mutual Fund Advisors

Mutual Fund advisors are professionals who advise investors on investing in mutual funs and in turn charge a fee from the investor. He makes the investor aware about various schemes run by different Asset Management Companies (AMCs) and assists them in selecting the best one according to the individual investor's requirements. 

The mutual fund advisors have to track the mutual fund industry and update the investors periodically on the performance of their investments and potential opportunities. He has to conduct quantitative and qualitative analysis using the database and has to keep a close eye on the important developments in the mutual fund industry, markets, and the broader economy.

Role of mutual fund advisors

Knowing the investor

The first duty of the mutual fund advisor is to make a financial plan for a client, according to their financial goals and constraints. He has to formulate the complete investment strategy which his clients will follow to achieve their individual goals. This involves exploring all the investment options available and select the ones which are best suited for his client's portfolio.

Educating the investors 

Next task for a fund advisor is to educate the client about different investment options available for him. Sometimes the advisor might have to go deep and educate the investors about all the investment constraints they might face, including the difference between the investor's ability to bear the risk and willingness to take the risk.

Evaluating risk-taking capacity 

As discussed earlier, advisors suggest the right investment option based on the risk appetite of the investor. For instance, equity funds are riskier than debt funds, and not every investor will prefer that risk. The advisor considers the long term and short term financial goals, investment constraints, investment tenure, expenses, family status, age, and current financial responsibilities before devising an investment strategy.

Analyzing investment options

Mutual Fund Advisors

Once the client’s goals, conditions, requirements, and constraints are in place, the mutual fund advisors complete a thorough analysis of market conditions. Only, then they recommend how much to invest in equity funds, debts funds or in liquid fund accordingly. Therefore, advisors always must stay updated with the latest financial news and trends to ensure they offer relevant advice.

Helping investors diversify their portfolio

Diversification is important since it helps in reducing the overall portfolio risk by spreading it over a broad investment range. A lot of research goes into tracking the best investment options across sectors and markets. Therefore, the mutual fund advisors play an important role in optimizing portfolio and minimizing risks.

Also Read: How to select an Investment Advisor who is the best for you


One important job of the mutual fund advisors is to handle discreet financial details of the client. These details are not supposed to be misused or shared without the client's consent. Advisor will have to maintain the records of services provided – invoices, details of services offered and any other transactions. This documentation is important during the audit of the firm by regulatory bodies.

Mutual Fund Agent Eligibility 

Educational Qualification

To start a career as a Mutual Fund Advisor, the minimum requirement is NISM Series VA Mutual Fund Distributors Certification and a registration number from the Associations of Mutual Funds in India ( AMFI). 

Important: The minimum qualification to take this examination is class 12th or class 10th with 3 years of diploma.

Age Limits 

The candidate should be of 18 years or above to become a mutual fund agent.

Also Read: Investing in Corporate Fixed Deposits

How to Become a Mutual Fund Agent? 

To become a Mutual Fund Agent one has to follow the below-given steps: 

Step 1 

After completing 10th class with 3 years of diploma or 12th class from any steam, the candidate has to pass an exam conducted by National Institute of Security Market ie. series V A mutual fund distribution certificate.

Step 2 

After clearing the exam one is eligible to become a Mutual Fund Agent. However, it will be prudent for aspiring candidates to hold bachelor's degrees like B.Com Honors, BA Honors, etc. The candidate needs to make sure that his stream should include subjects like economics, accounting tax, and Finance or investment analysis. 

Mutual Fund Training Institutes in India 

  1. Forex Keys (VJS Academy)
  2. Vishakapatnam Kunjbiharl S Goyal Online Academy for Learning and Development (GOLD), Mumbai
  3. Institute of Career In Financial Market, New Delhi
  4. Sydenham College of Commerce and Economics, Mumbai
  5. Equity Analysis Inc., Mumbai
  6. Dalal Street Investor Academy, Pune
  7. Focus Educare Pvt Ltd, Bangalore
  8. CSE Institute of Capital Market, Kochi
  9. The Greed N Fear -Institute of technical analysis, Ahmedabad
  10. Datta Institute for Stock Market Education, Hyderabad
  11. Stock Market Institute (SMI), Bangalore
  12. Jain Arbitrage Destination, New Delhi

Mutual Fund Agent Salary 

The salary range of a Mutual Fund Agent is based on experience. Candidate having 1 or 2 years of experience can get salary up to Rs.50,000/ to Rs.80,000/ -. After a few years when the advisor is more experienced about the job and have great knowledge about mutual fund securities then the salary increases up to Rs. 1,00.000/- to Rs. 2,00,000 per month.


Also Read: 

Impact of Coronavirus on Economy and Finance

How many mutual funds are needed for diversification?

Best Low-Risk Investment Options



Send Icon