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Mutual Fund Agent Salary in India

The mutual fund distributor’s commission gets a fee for intermediating or becoming a bridge between the client and AMCs. This commission can be said as a type of salary that any agent gets in return for a client’s investment.

The commission structure for a mutual fund can be stated as follows:

Trail Commission
Upfront Commission

Trail Commission: This type of commission is done as long as the investors are investing the money in the particular AMC. The Commission % might get low with a large AUM.
The commission percentage may vary from 0.50-1.0% also thai commission is paid frequently i.e. monthly or quarterly.

This particular commission operates on two types
1. T-30 cities: All those cities that are top 30 cities of India come under t-30 cities, i.e Mumbai, Pune Chennai, Bangalore, and much more Their Commission ranges from 0.1 to 2%. They get a standardized commission that doesn’t involve the benefits and other incentives.

2. B-30 cities: In this, all those cities that are below 30 top cities are said to be B-30 cities, where the number of investors is less and people don't have much knowledge about the funds and related instruments.

Their commission ranges from 0.1% to 2%. These agents get a standardized commission and also a special commission as they work at a place where investors are fewer in number and they help them to get the best investment plan.

Note: Upfront Commission is no longer in effect.

What is the difference between a Mutual Fund Agent and an Investment Advisor?

Parameters	Mutual fund Agent	Investment Advisors
Services provided	Provides the right mutual fund scheme which is generally based on the investor's risk tolerance and investment	Provides advice to investors based on the user’s investment portfolio tax strategies etc.
Minimum Investment Amount	The invested amount can be as low as Rs.100	The invested amount can be as low as Rs. 1000
Fees	They receive a commission from the fund house	They receive from the clients quarterly/ monthly/ yearly
Regulation	Registered with AMFI and governed by SEBI	Regulated and registered by SEBI
Mode of delivery	Completely online	It involves physical meetings as well

Why Become a Mutual Fund Agent?

Here are some reasons why you should consider becoming a mutual fund agent:

❂ Lucrative Earnings: Mutual fund agents earn commissions on the funds they sell, which can add up to a substantial income. As the mutual fund industry continues to grow in India, the potential for earning as a mutual fund agent is high.

❂ Flexible Work Timings: When you become a mutual fund advisor, you get the flexibility to set your own work schedule, which allows you to maintain a work-life balance that suits you.

❂ Low Start-Up Costs: Becoming a mutual fund agent does not require a significant upfront investment, making it an accessible career option for those without a large amount of capital.

❂ Growing Industry: The mutual fund industry in India is growing rapidly, with increasing awareness and interest in mutual funds among retail investors. This provides ample opportunities for mutual fund agents to grow their businesses.

❂ Professional Development: Becoming a mutual fund agent requires passing a certification exam and ongoing training to stay updated on industry trends and regulations, providing opportunities for professional development and personal growth.

Discover More: Find Mutual Fund Agent List In India | Search Mutual Fund Distributor

How do I register a mutual fund agent?

To register as a mutual fund agent in India, follow these steps:

❂ Eligibility Check: Ensure you meet the eligibility criteria set by the Association of Mutual Funds in India (AMFI). Typically, you need to be at least 18 years old and possess the necessary educational qualifications.

❂ Choose a Mutual Fund Distributor (MFD): Decide whether you want to work as an Individual Mutual Fund Distributor or associate with a brokerage firm or financial institution.

❂ Complete Necessary Training: Enroll in the mandatory certification course like the National Institute of Securities Markets (NISM) Series VA Mutual Fund Distributors Certification Examination.

❂ Gather Documents: Prepare documents like PAN card, Aadhar card, educational certificates, address proof, passport-sized photos, and any relevant experience certificates.

❂ Apply for AMFI Registration: Apply for AMFI registration by filling out the application form through the AMFI website or a registered Mutual Fund Registrar.

❂ Background Verification: Your application will go through a background check by AMFI.

❂ Pay Fees: Pay the required registration fees to AMFI.

❂ Complete KYD Process: Complete the Know Your Distributor (KYD) process by submitting the necessary documents and fulfilling the in-person verification.

❂ Obtain ARN: Once approved, you will receive an AMFI Registration Number (ARN), which is necessary for conducting mutual fund distribution.

❂ Empanelment: If you are associated with a brokerage firm or financial institution, complete their empanelment process.

❂ Start Distribution: Now, you can start distributing mutual funds to clients and earn commissions.

Frequently Asked Questions about Becoming a Mutual Fund Agent

Q. What is the salary of a mutual fund agent in India?

A. The salary of a mutual fund agent in India varies widely based on factors such as experience, location, client base, and commission structure. It can range from a few thousand to lakhs of rupees per month.

Q. How do mutual fund agents earn money?

A. Mutual fund agents earn commission from asset management companies and distributors for the units of mutual funds they sell. Agents also earn trial commissions on mutual fund investments made by their clients till redemption. The commission structure depends on various factors, such as the AMC, scheme, or city.

Q. How much does it cost to become a mutual fund agent?

A. Becoming a mutual fund agent costs almost nothing. One has to pay a small registration fee for appearing for NISM VA Mutual Funds Distributor Certification Examination, and an application fee for an AMFI Reference Number or ARN code. That is all the expense you need to become a mutual fund agent.

Q. Can I become a full-time mutual fund agent?

A. Yes. You can be a full-time mutual fund agent and earn a great living. Moreover, you can also be a part-time mutual fund agent and earn a passive income. It is a lucrative career opportunity for people from different walks of life – from fresh graduates and housewives to retired professionals and people simply looking for a new career.

Q. What is the minimum educational qualification to become a mutual fund agent?

A. Anyone who has cleared the class 12th examination or completed a three-year’ diploma after class 10th can take the NISM VA Mutual Funds Distributor Certification Examination and register with AMFI to become a mutual fund agent.

Q. What is the minimum and maximum age to apply for an ARN number?

A. A person should be at least 18 years of age to apply for an ARN number for mutual funds distribution. Furthermore, there is no maximum age to become a mutual fund agent.