AMFI Reference Number (ARN)

ARN, short for AMFI Reference Number, is a unique code that the AMFI issues to a mutual fund distributor or agent for selling or marketing units of mutual fund schemes to investors. Without an ARN code, no organization or individual can legally distribute or sell units of MF schemes. ARN code is a measure by the Association of Mutual Funds in India to ensure transparency in the market and safeguard investors. To obtain an ARN Number, an individual must first clear an examination, and register with the Association of Mutual Funds in India.

AMFI Registration Process

You can apply for an ARN code online as well as offline. Both the options are explained below in detail.

Here are the steps for registering with AMFI and getting your ARN number online:

Visit the CAMS website (web.camsonline.com/AMFI/login.aspx) and register online.
Head to the CAMS office near you and obtain your application form and Know Your Distributor (KYD) form. In case your KYD is still being processed, then you must submit your application form for KYD in person.
Submit all the required documents along with the application form and applicable registration fee. AMFI is currently charging INR 3000 (exclusive of GST). Please note that this fee is subject to change. You can check the latest fee on the official AMFI website.
Once the procedure is complete, AMFI will share the Letter of Registration with the registered email address.
The process for offline AMFI registration is as follows:
Head to the CAMS office near you and get the ARN application form.
Fill in all the details carefully.
Attach all the required documents.
Submit your application form along with the self-attested documents required for processing.
You need the following documents for AMFI registration:
Copy of NiSM VA: Mutual Fund Distributors Certification Examination passing certificate
Copy of Aadhaar Card
Copy of Pan Card
Proof of Bank Account
Two Passport-sized photos

Please note that NiSM certification is essential for AMFI registration. You can visit our NiSM certification page to learn more about it.

Importance of ARN Number

As mentioned above, the ARN number is critical for agents and distributors marketing or selling units of mutual funds schemes to investors. Let us further delve into the importance of the AMFI Registration Number.

An ARN code acts as proof of identity and legitimacy of a mutual fund distributor, agent, mediator, or advisor.
In today’s era of rising cases of scams and fraud, the ARN code assures investors that the distributor is genuine and follows AMFI’s code of conduct and ethics.
The registration number also helps investors in tracking assets enlisted by the mediator.
An ARN code also proves beneficial if the investor chooses to change the distributor. In that case, no charges for trail commission are charged.
Moreover, AMFI ARN is also helpful in calculating the brokerage or commission earned by the advisor, agent, distributor, etc.

Frequently Asked Questions About Mutual Fund Distributor Business (MFD Distributor)

Q. How Much Does a Mutual Fund Distributor Earn?

A. Mutual Fund Distributor salary in India ranges between INR 0.1 Lakhs to INR 4.9 Lakhs with an average annual salary of INR 1.5 Lakhs.

Q. What is the full form of MFD in mutual funds and its meaning?

A. MFD Stands for Mutual Fund Distributor. An individual or an entity facilitating the buying and selling of units of mutual funds by investors.

Q. How do I become an MF agent?

A. So, you're interested in becoming a Mutual Fund (MF) agent and navigating the financial world? Fantastic choice! Here's a straightforward roadmap to kickstart your journey:

1. Educate Yourself: Start by deepening your understanding of mutual funds. Familiarize yourself with different types, risk factors, and market trends.

2. Get Certified: Obtain the necessary certifications. Regulatory bodies often require agents to pass exams. This not only enhances your knowledge but also builds credibility.

3. Choose a Reputable Firm: Align yourself with a respected mutual fund distribution company. Research their reputation, support for agents, and the range of products they offer.

4. Build Your Network: Networking is key in this industry. Attend industry events, connect with professionals, and engage with potential clients. Building relationships is at the heart of being a successful MF agent.

5. Stay Informed: The financial landscape evolves, so should you. Stay updated on market trends, regulatory changes, and new investment opportunities.

6. Embrace Technology: Leverage digital tools for client management, market analysis, and communication. Embracing technology can give you a competitive edge.

7. Provide Excellent Service: Customer satisfaction is paramount. Ensure prompt and accurate assistance to your clients. Happy clients are more likely to recommend your services.

Q. How to Start a Mutual Fund Distribution Business?

A. The steps to start a mutual fund distribution business are as follows:

> Complete the NISM Series V-A: Mutual Fund Distributors Certification Examination. This exam assesses your knowledge of mutual funds and the regulatory framework governing their distribution.

> Obtain an AMFI Registration Number (ARN). The ARN is a mandatory requirement to distribute mutual funds in India. You can apply for an ARN online through the AMFI website.

> Empanel with mutual fund companies (AMCs). Each AMC has its empanelment process, which involves submitting your credentials and business plan.

> Establish a business infrastructure. This includes setting up an office space, obtaining necessary business licenses, and hiring a team of qualified professionals.

> Develop a marketing plan. Reach out to potential investors through various channels, such as social media, seminars, and workshops.