How to Become Mutual Fund Agent

Are you interested in mutual funds and want to make a career out of it? Then, becoming a mutual fund agent will be a great approach. 

This way, you can apply your mutual fund knowledge to help investors make better decisions. If they make a profit, you’ll earn a commission. 

To become a mutual fund agent, you must understand the various steps involved. Knowing the responsibilities, clearing the associated exams, and obtaining necessary certificates will be vital. You can be a successful mutual fund professional only through proper preparation. 

Need in-depth knowledge about this? Read on to find out all the detailed steps of being a mutual fund agent. 

Eligibility to Be a Mutual Fund Agent     

There are no stringent minimum education requirements for entering the mutual fund industry. However, aspiring candidates must clear their class 12th or class 10th. A basic understanding of mathematics and economics is important. 

Moreover, it’ll be excellent if you have a bachelor’s degree in commerce, economics, or financial markets. This is because commercial and financial knowledge will help you understand the investment market better. As a result, you can guide clients in investing their money wisely.

Age Limits

The minimum age to be a mutual fund agent is 18 years and above. There are no maximum age limitations here.

Additionally, if you’re above 18 years and have experience working in a mutual fund organization, it’ll boost your career. Even if you have completed an internship or training on mutual funds, you’ll be on your way to becoming an agent. 

Mutual Fund Exam Registration

The first step in becoming a mutual fund professional agent is the NISM exam registration. It is mandatory to register for the NISM (National Institute of Securities Market) VA Mutual Funds Distributors Certification Exam to move ahead. 

You have to register online for this exam following very straightforward steps. Visit the website and create an account, and log in to the account.

The registration fee is Rs. 1500, and the registration will be complete after you make the payment. Then, you will receive a PDF for exam preparation.  

Clearing the NISM Exam                      

After completing the registration process, you have to appear for the NISM VA exam. The test consists of 100 multiple-choice questions carrying one mark each. There are no negative markings, and you need to obtain 50 marks to pass the test. 

It will be an online examination, and you will need to appear for it by visiting the official website of NISM. After submitting all the answers, you will see the final score on the screen. Then, you can download the PDF file of the NISM certification.

Moreover, the hard copy of this certificate will be sent to your registered address within a month. The certificate’s validity is 3 years from the date you cleared the exam.   

Tip: You can join a coaching center or study the topics in the syllabus from reference books. Being well-versed with the syllabus and weightage of topics will help your preparation. 

KYD (Know Your Distributor) Procedure  

When you have received the NISM certificate, you need to undergo a KYD procedure. Simultaneously, you need to apply for the (AMFI) Association of Mutual Funds in India for an AMFI registration number. The number is required for advising or selling mutual funds in India. 

You need to submit the following documents for completing this ARN application – 

  • PAN card
  • NISM certificate 
  • Identity proof 
  • Address proof 

It is crucial to submit all these documents along with the KYD application form to a CAMS KYC Registration Agency. Alternatively, you can submit the documents online. After the successful verification of documents, you will receive your official ARN number. 

In addition, you will get a mutual fund agent card delivered to your doorstep within a few days. 

AMFI Distributor Registration 

By now, you would have become a mutual fund agent or distributor ready to help clients. However, you need to contact the AMFI distributors to sell mutual fund schemes and earn commissions. You will receive a fixed commission according to the agreement between you and the distributor. 

You can also work directly with mutual fund firms as their agent and sell funds on their behalf. Registering and working with these companies will enable you to handle associated regulations and gain clients conveniently. 

However, the commission rates will vary according to the fund house and distributor. So, research well and understand the agreement terms before collaborating with a firm. 

The Bottom Line 

Along with following all the mentioned steps, you need to acquire the skills for being a mutual fund agent. Stay aware of the latest trends in the financial market and understand the related concepts. It will enable you to examine various investment avenues carefully. 

Your communication skills will play a vital role in shaping your career as an agent. So, keep interacting with clients and try being a good listener. Offer them advice after evaluating their investment budget and risk-taking appetite.      






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