How to Become Mutual Fund Agent — Best option & salary 2021

A mutual fund advisor’s job is to guide customers to invest in mutual fund schemes to build or maintain their money and achieve their financial goals. After examining investors’ investment horizons, risk appetite, and investment objectives, MF advisors provide individualised financial advice. However, Do you know How to Become Mutual Fund Agent? Let’s discuss it in detail.

How to Become Mutual Fund Agent?

Mutual fund advisors have experience in both selecting and putting together a portfolio of mutual fund schemes that are associated with investors’ financial objectives.

This necessitates the MF advisor taking the initiative to watch a variety of mutual funds schemes with various investment objectives, as well as staying current on key financial market events that may have an impact on the performance of these schemes.

A mutual fund investment advisor may receive commissions directly from the fund house or indirectly via distributors who sell the house’s schemes.

Steps to Become Mutual Fund Agent

These are the major steps you need to follow to become mutual fund agent:

Those interested in becoming mutual fund advisors should first take the National Institute of Securities Market (NISM) VA Mutual Funds Distributors Certification Exam.

This can be done by visiting the official website of NISM and paying a INR 1500 registration fee. The test will be conducted at NISM locations that have been formally vetted.

After completing the registration process, the candidate will be able to receive a PDF file that will assist them in studying for the exam. Hard copy textbooks or internet course materials can also be used to study.

If the prospective mutual fund advisor passes the NISM exam, they will be certified as a mutual fund advisor. This certificate will be accessible in paper copy about 30 days after their test results are published, however it can be obtained immediately in e-format as test results are ready.

The validity of the certificate is three years from the date of the examination. The CPE Program likewise has a three-year validity period.

The candidate must complete a necessary Know Your Distributor process after passing the exam and becoming certified. This will happen when they apply to the Association of Mutual Funds in India (AMFI) for an AMFI Registration Number (ARN), which will allow them to begin selling or advising on mutual fund schemes in India.

In the ARN application form, the candidate will be asked to enter their PAN, NISM Distribution certificate number, Identity credentials, and other documentation.

All completed forms must be submitted to CAMS-KRA (KYC Registration Agency) either physically or electronically, depending on the requirements.

Note

After the documents are properly confirmed, the candidate (now a mutual fund agent) will be assigned an ARN number, and their card will be delivered to the location specified in their application within a few days.

The mutual fund agent is now a full-fledged MF advisor after obtaining their ARN number. They can now start selling to clients and earning commissions for it.

The next step is to reach out to AMFI distributors about selling these funds. Distributors are paid a commission based on the number of mutual fund schemes that the advisor sells.

The advisor can also sell mutual funds directly from fund houses or asset management companies (AMCs) rather than through distributors.

The NISM Series VA Mutual Fund Distributors Certification is the minimum required for becoming a Mutual Fund Distributor. As well as a registration id from Association of Mutual Fund in India (AMFI).

* Education : To take this exam, you must have completed class 12 or class 10 with a three-year diploma.
* Age Requirement: To become a Mutual Fund Agent, the candidate must be at least 18 years old.

Originally published at https://profitmust.com on October 7, 2021.