Know about AMFI Mutual Fund Distributor Karein Shuru
Mutual funds have become one of the most sought-after tools for wealth creation in India today, and hordes of investors are pouring into the market. As a result, the industry has seen unprecedented growth in the recent past. Moreover, the market is continuing to grow at a great pace, and showing no signs of slowing down any time soon. If predictions are to be believed, the Indian mutual funds industry will expand at a CAGR of over 20 percent in the next five years from 2022 to 2027.
But not all investors coming into the market have the knowledge and expertise necessary to make right investment decisions or know how to invest in mutual funds. That is where mutual fund distributors come in! MFDs educate investors on how to invest and also aid in making investment decisions. However, the massive growth of the MFs industry has led to an imbalance in the number of investors seeking investment and procedure-related advice and the number of distributors to cater to this need. To fill this gap, AMFI has launched a campaign named – Mutual Fund Distributor Business Karein Shuru ? – to attract individuals to the lucrative career opportunity as a mutual fund distributor. With this campaign, the regulatory body aims to increase the number of MFDs in India and help people create a career in the fast-growing sector.
This article is a deep dive into AMFI and its Mfd Karein Shuru campaign, and talks about various things like the role of AMFI in the mutual funds industry, objectives of the regulatory body, AMFI Registration Number, and more. Let us begin.
Association of Mutual funds in India
The Association of Mutual Funds in India, also known as AMFI, is the regulatory body that oversees the mutual funds industry in India. It is a division of the SEBI or the Securities and Exchange Board of India – the regulatory body that looks over the securities and commodities market in India. The AMFI was formed in 1995 with the aim to boost the development of India’s mutual funds sector.
Its members include mutual fund companies that roll out MF schemes for investment purposes. The organization not only strives to strengthen the mutual funds market in India, but also to ensure that stakeholders maintain the highest levels of ethical and professional standards. Thus, the AMFI protects the interests of both, mutual fund companies as well as people investing in mutual funds.
Let us now understand the role of AMFI in the Indian mutual funds sector.
Role of AMFI in Mutual Funds Industry
The Indian mutual funds market has grown at lightning pace, especially in the past few years. More and more investors are coming into the market with the objective of wealth creation. However, not everyone investing their money in MF schemes possesses sufficient knowledge about the various procedures and processes. As a result, these people are susceptible to frauds and scams, such as misuse of investors’ funds and mis-selling to the end customer. The Association of Mutual Funds in India was established to keep a check on such instances.
The diverse role of AMFI also includes resolving disputes arising in the mutual funds investment space. This non-profit organization works towards the benefit of investors by enhancing the transparency in the market. It also plays a key role in bolstering the trust of investors in the Indian mutual funds industry.
After discussing the role of AMFI in the mutual funds industry, you might be wondering about the objectives with which this regulatory body was established. Our next section discusses the same.
Objective of all India mutual fund Association
The AMFI was established with several clear objectives. The most important of these are explained below:
• Amongst the main objectives of the AMFI is to ensure that all participants in the industry follow the highest ethical standards in their everyday operations.
• The organization also oversees the operations of asset management companies or AMCs and mutual funds agents, distributors to ensure they follow the code of conduct and engage in fair business practices.
• It also seeks guidance from SEBI regarding any issues pertaining to the mutual funds industry and escalate any issues in an appropriate and timely manner.
• The AMFI also aims to inform and educate stakeholders about policy and regulatory developments.
• This regulatory body also partners with other bodies in the sector to conduct research activities to find useful and actionable insights in the MFs market.
• It takes action in case a distributor or asset management company is found violating the code of conduct or ethical standards.
• The AMFI also maintains the integrity of the mutual fund intermediation mechanism and protects the interest of investors.
The AMFI takes several measures to maintain and strengthen the investors’ trust in the mutual funds markets and its participants. Amongst these is ARN. We elaborate on the same in our next section.
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 register with AMFI and get 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 1500 (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 to 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 self-attested documents required for processing.
You need 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 know more about it.
Importance for ARN Number
As mentioned above, 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 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 frauds, 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.
More about AMFI MFD Karein Shuru Campaign
On July 12th, 2022, AMFI announced the launch of MFD Kare Suru – a new campaign aimed at recruiting mutual find distributors. Through this campaign, AMFI aims to highlight the benefits and long-term earning potential of a career in mutual fund distribution. Soon there will be TV commercials, print ads and digital advertisements to educate and inform people about this career opportunity most are unaware of. It will surely attract people aware of the behemoth potential in the Indian mutual funds industry.
Mutual funds distribution is a great career choice for people from different walks of life. Whether you are a recent college graduate, small business owner, retired professional, woman trying to enter workforce, or someone looking for a career shift, there is a chance for you to build a career in MF distribution. And that is precisely what AMFI MFD Kare Shuru campaign is striving to convey to people.
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