Become a Mutual Fund Distributor

Since mutual funds are among the safest and most liquid investments available in India, it is only natural that individuals would be eager to learn how to become mutual fund distributors during this period. It is a good opportunity to do business as a mutual fund distributor for any individual. This book will guide you through all that you need to do in order to be a mutual fund distributor and become big in the mutual fund distribution industry. With the prevailing economic conditions, a mutual fund agent is highly important in order to connect investors with various intelligent investment choices.

What is a Mutual Fund Distributor?

A mutual fund distributor is a registered professional who helps investors buy and sell mutual fund schemes and guides them to choose the right ones. They provide guidance on different mutual fund schemes based on clients’ financial goals. Unlike mutual fund agents, distributors are required to clear the NISM mutual fund distributor exam and obtain an AMFI Registration Number (ARN) to operate in the mutual fund distribution business legally. This registration helps them earn mutual fund distributor commission by offering services that align with investors’ needs.

Why Become a Mutual Fund Distributor?

Becoming a mutual fund distributor comes with several benefits and opportunities for long-term growth in the mutual fund distribution business:

1.High Earning Potential

Mutual fund distributor commission is earned on the investments made by their clients. The more investors you onboard, the higher your earnings. These mutual fund distributor income are paid by Asset Management Companies (AMCs) based on the invested amount and type of fund, depending on the risk capacity of the investor.

2.Growing Market Opportunity

With increasing financial literacy and trust in mutual funds, more individuals and businesses are investing, boosting demand for professionals who know how to become mutual fund distributors and serve this expanding market with their knowledge.

3.Low Initial Investment

Unlike other financial businesses, becoming a mutual fund distributor requires low capital investment with minimal setup cost, infrastructure, or inventory.

4.Flexible Work Structure

You can operate independently, work even remotely, or partner with already established platforms or financial institutions to grow your client base.

5.Recurring Income Model

Mutual Fund Distributor income is constant through trail commissions as long as investors stay invested. This provides long-term earning potential.

6.Opportunity to Build a Mutual Fund Business

With continuous effort, you can grow your client network, even hire sub-distributors, and scale your mutual fund distribution business into a profitable venture.

Becoming Mutual Fund Distributor Requires Following Steps:

To become a mutual fund distributor in India, follow these steps:

Step 1:

Meet the Eligibility Criteria

  • You must be at least 18 years old.
  • Basic educational qualification (preferably 10+2 or graduation)

Step 2:

Pass the NISM Mutual Fund Distributor Exam

To qualify as a mutual fund distributor, you need to pass the NISM-Series-V-A: Mutual Fund Distributors Certification Examination. It’s mandatory for anyone looking to become a mutual fund agent or distributor. The exam covers mutual fund basics, regulations, and investor services.

Step 3:

Obtain an AMFI Registration Number (ARN)

Once you pass the NISM mutual fund distributor exam, register with AMFI (Association of Mutual Funds in India) to get your AMFI Registration Number (ARN). This number is necessary to distribute mutual funds in India.

Step 4:

Register with Asset Management Companies (AMCs)

After obtaining your ARN, you must register with different AMCs to offer their mutual fund products to your clients.

Step 5:

Acquire the Required Software to Serve Your Customers

Managing multiple clients and mutual fund schemes requires efficient tools. Many Mutual Fund Distributors use digital platforms to track client investments, generate reports, and simplify transactions.

How to Become a Mutual Fund Distributor in India?

Step 1: Pass the NISM-Series-V-A Exam: Mutual Fund Distributotrs Certification Examination

To become a mutual fund distributor, you must pass the NISM-Series-V-A: Mutual Fund Distributors Certification Examination, conducted by NISM (National Institute of Securities Market). This exam tests your knowledge of mutual funds, investment strategies, and regulations.

The major motive of this examination is to ensure that the distributor has fundamental knowledge regarding Mutual Funds. Passing a certificate issued by National Institute of Securities Market (NISM) in respect of NISM – Series V-A has a validity period of three years.


For those interested in pursuing this career, the first step is to clear the exam and obtain your mutual fund distributor commission rights. The mutual fund distributor income can vary based on the number of clients and the volume of business you handle, making it a potentially lucrative career.

Obtain Your AMFI Registration Number (ARN)

How can you become a registered mutual fund distributor in India and obtain your AMFI Registration Number (ARN) :

  • Clearing the NISM V-A Exam: Passing the NISM mutual fund distributor exam is an important step towards being a mutual fund distributor in India.
  • Application for Online for ARN: After passing the required NISM exam, apply for your AMFI Registration Number (ARN) through the official website of AMFI. It is a completely online process that can be done from any place.
  • ARN is Your Identification Number: ARN is a unique identification number given to you by the Association of Mutual Funds in India (AMFI). It formally identifies you as an AMFI Registered Mutual Fund Distributor (ARMFD).
  • Also, get EUIN: You will also be provided with an Employee Unique Identification Number (EUIN) along with ARN. It proves to be helpful if you have employees making mutual fund orders on your behalf.
  • Obtain a Photo ID Card: AMFI will provide you with a photo identity card that contains:
    • Your name
    • Photo
    • ARN number
    • Address
    • ARN validity period
  • Begin Your Distribution Business: With your ARN, you can begin your mutual fund distribution business and earn mutual fund distributor commission on client investments.

Get registered with Mutual Funds or join an Online Platform

After getting your AMFI Registration Number (ARN), you need to do the following to become a legal mutual fund distributor:

    • Empanel with Mutual Fund Companies

Approach individual mutual fund houses and complete their empanelment process. This will allow you to sell their schemes and earn mutual fund distributor commissions.

    • Join an Online Mutual Fund Distribution Business Platform
      • Instead of visiting each AMC separately, you can register on an online platform like Nivesh.
      • Fill up the empanelment form and start immediately.
    • Why Should You Choose Nivesh?

It allows you to grow your mutual fund distribution business without incurring any initial cost, and the process is easy, automatic, and easy to use.

Learn to Provide the Right Mutual Fund Schemes to Your Customers

In order to provide a right mutual fund scheme to the customer, there are these major factors to consider:

  • The investment objective of the client – what is the financial goal for which the customer is planning to invest.
  • The time horizon for which the investor is willing to keep his or her money invested in the scheme. It could be anywhere from a few months to many years.
  • Risk preference of the customer. Whether they are conservative or moderate risk takers.
 

Learn How to Grow Your Mutual Fund Business:

The most important task is to grow your mutual fund distribution business. No business can survive without customers and hence you need to look at multiple options to get new customers:

  • Talk to potential customers in your circles like friends and relatives and inform them about your new business
  • Use Social Media to promote your business
  • Share knowledge with others
  • Conduct webinars and online meetings to talk about the benefits of investing through Mutual Funds

Acquire the Required Software to Serve Your Customers

To provide seamless service to your clients, invest in digital tools that help you:

  • Client Portfolio Management Tools
  • CRM Software (for customer relationship management)
  • Track mutual fund investments efficiently.
  • Generate automated reports.
  • Offer online transactions and portfolio tracking.

Why Become a Mutual Fund Distributor?

Frequently Asked Questions (FAQs):

1. What is the Eligibility Criteria to Become a Mutual Fund Distributor?

Anyone above 18 years with a minimum 10th pass qualification can become a mutual fund distributor by passing the NISM-Series-V-A exam and obtaining an ARN.

2. How Long Does it Take to Become a Mutual Fund Distributor?

It usually takes 2-4 weeks to complete the NISM exam, ARN registration, and empanelment process.

3. Can I Become a Mutual Fund Distributor Without an ARN?

No, an AMFI Registration Number (ARN) is mandatory to sell mutual funds in India.

4. How Much Investment is Required to Start a Mutual Fund Distribution Business?

The main expenses include:

  • NISM Exam Fee – ₹1,500
  • ARN Registration Fee – ₹1,770 (for individuals)
  • Other Expenses – Software, marketing, and networking (optional)

5. Do I Need a License to Sell Mutual Funds?

Yes, you need an ARN (AMFI Registration Number) issued by AMFI after passing the NISM-Series-V-A exam.