How to become a Mutual Fund Agent?

How to become a Mutual Fund Agent?

Firstly! Know what Mutual funds are! to become a mutual fund agent, For many people, Mutual Funds can sound complicated and challenging. we are trying to make it little simple for you, In mutual funds, money is pooled  by a large number of people and this fund is managed by a professional fund manager

It is a fund that collects money from different investors who share the same investment interest and objective, then professional fund manager invests this money into equities, money market instruments, bonds, and in other securities. each partner owns a unit. And income generated from this fund get distributed among all the investors in the fund after deducting applicable expenses.

To know more about mutual funds in depth click here

To become mutual fund agent/distributor can be a great part-time source of earning for most people in India.

Here are simple steps to become mutual fund agent in India:

Step1: Pass the NISM series V-A: Mutual fund distributors certification examination

Agents play a central and significant role in promoting the sale of Mutual funds, there is no such minimum educational qualification requirement for becoming Mutual fund distributor, any person who is able to qualify the NISM Series V-A, mutual fund distributor certification exam can become a mutual fund agent/distributor.

The exam, however, requires the significant amount of time and preparation, if anyone going to take it lightly this can prove to be negative for them.

Step2: Register with AMFI through CAMS office

After clearing NISM Series V-A, mutual fund distributor certification exam you will be eligible to be an Agent.

You will then require to fill in know you distributor(KYD) details along with biometrics and also fill in AMFI Registration form(ARN). this is a small application form asking for your name, address, qualifications, photographs etc you can find it Here

After that submit all the filled form to any of the CAMS offices and if you are not KYD compliant you have to go to the CAMS office to submit your form and complete biometrics there.

On completion of the process, you will get your ARN card within few days at your registered address.

 

Step3: Register with AMC:

when you will get AMFI registration number(ARN) you are free to distribute mutual fund services and get the commission. however, there is another small procedure before you can start working.

you need to register with each mutual fund house so that you can receive the commission, application form, marketing material etc.

In these three steps, you can become a mutual fund agent and start earning commissions. the whole procedure will take up to a month and a half including preparation for the exam.

 

How to prepare for NISM series V-A: Mutual fund distributors certification examination:

You can prepare for NISM series V-A: Mutual fund distributors certification examination online to become mutual fund agent, For many people, Mutual Funds can sound complicated and challenging. we are trying to make it little simple for you, In mutual funds, money is pooled by a large number of people and this fund is managed by a professional fund manager. there are so many free available for the preparation plus you can also find the mock test and practice exams.

As per the NISM website, only 60% of the exam takers qualify the exam so taking the examination without preparation cannot prove to be fruitful. people above the age of 50 can directly take the exemption for this examination.they have to attend the one-day NISM training programme called NISM Continuing Professional Education(CPE) previously called AMFI refresher course.

Fee structure:

For individuals fee is Rs. 3000+ 18% GST and in demand draft.

You can find the Full detail about the NISM series V-A: Mutual fund distributors certification examination fee Structure here.

AMFI Registration Number(ARN): Silent features

AMFI registration number is a unique code which identifies the agent as ARMFA

  • You can get ARN at the age of 18
  • ARN is a Unique number allotted to:
    • Individuals agents, brokers having passed the NISM series V-A: Mutual fund distributors certification examination
    • Corporate engaged in the business of mutual fund.

 


 

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By | 2018-12-17T12:39:53+00:00 July 9th, 2018|Investments, Mutual Funds|0 Comments

About the Author:

Pulkit Jain is the founder of LegalRaasta – India's top portal for registration, trademark, return filing and loans. Pulkit is a veteran CA with over 10+ of experience.