Mutual Fund Agent

Become a Mutual Fund Agent

  • Opportunity for easing the process of mutual fund for investor and Began to earn.

  • Advise people to understand and Buy Mutual Funds. Get beneficial mutual fund agents commission.

  • With LegalRaasta become Mutual Fund Agent / Distributor/Advisor at zero fees.

  • Only Refer Mutual fund Investors Leads and Rest will be processed by LegalRaasta.

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Mutual Fund Agent

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Eligibility criteria to become Mutual Fund Agent

The legal bodies SEBI and AMFI regulation states that the Mutual fund houses in India are not allowed to trade with agents, distributors or advisors who are not certified with AMFI and got ARN.

  • The qualification criteria base for mutual fund agent, mutual fund distributor and mutual fund advisor is minimum 12 class passed or 10 class passed with 3 years of Diploma.
  • The applicant must have completed the age of 18 years for becoming the mutual fund agent. This is the minimum age for applying to become a mutual fund agent.
  • After this, you become qualified to apply for the NISM Series VA Mutual Fund Distributor Certification.
  • Also, get registered and authorized with the Association of Mutual Fund in India i.e AMFI.
  • The formulated fee is Rs. 3000+ 18% GST . This amount has to be submitted in the form of DD i.e. Demand Draft.

For senior citizens, the eligibility is different and requires different certification. Lets us look at how a senior citizen can become mutual fund agent.

Senior citizen criteria to become mutual fund agent/ Distributor

Senior citizens desire to become Mutual Fund Agent or Distributor must-visit CPE i.e. Continuing Professional Education Training module. They need to fill up the Application Form and Agreement to remain by the Code of Conduct as set by the AMFI.

  • Senior Citizens, who have passed the CPE and their Application has been permitted to give the photo identity card having unique ARN, address, etc. Same as the one being assigned to individual candidates.
  • The Validity period of the ARN code assigned to the Senior Citizens is also the same as the others i.e. 3-years.
  • The ARN Certificate is assigned to all Individuals, also Companies, involved in trading of Mutual Fund Plans.
    1. People get this in the form of an ID Card. This includes their photo, ARN number, name, address and the validity time.
    2. In the firms or companies cases, they get a Letter of Registration. This includes the unique ARN, name of the entity and the validity time of ARN.

Skills required to become a mutual fund agent

Senior citizens desire to become Mutual Fund Agent or Distributor must-visit CPE i.e. Continuing Professional Education Training module. They need to fill up the Application Form and Agreement to remain by the Code of Conduct as set by the AMFI.

  • Capability to well- organize quantitative analysis for the rate of interest.
  • He/she must understand how to examine debt and loan portfolio performance.
  • Mutual Fund Distributor must recognise how to achieve credit evaluation with global practices.
  • The agent improves the Basel based internal rating system.
  • Mutual Fund Advisor should comprehend how to create more useful trade ideas & know the difficulty in case of loans.
  • He/she must be capable of building & managing credit risk models.
  • Mutual fund agents must identify how to create credit strategy and credit portfolios.

Steps heading towards becoming mutual fund agent

    • Step 1
      Appeal for Examination for Mutual Fund Distributors as held by the NISM series V-A and clear it with a certification letter.

    • Step 2
      After this when you clear the NISM Series V-A you become eligible to be a mutual fund Agent. The simple process you have to follow is getting registered with AMFI by CAMS-KRA office.

  • Step 3
    The office will provide you with the AMFI Registration Form (ARN) which includes basic details. Fill all the KYD details (Know your Distributor). The important thing to remember is the details of the form must match your NISM Exam details.
  • Step 4
    It’s all your wish that you want to visit the CAMS-KRA offices or do an online form filling. If you don’t have KYD then you need to visit the office personally and finish your Biometrics Verification.
  • Step 5
    When the process is completed, you will receive an ARN card at the registered address in a few days.
  • Step 6
    When you receive you ARN further it’s required to get registered with an AMC or Mutual Fund House. The AMC will give training all about the mutual funds and will give a commission when your work is completed.

ARN Registration

  • This is a Unique Number assigned to only those Mutual Fund Agents, Mutual Fund Distributors, and Brokers who have passed NISM Certification.
  • In case you are senior citizen, you 1st need to clear CPE Continuing Professional Education i.e. to get ARN.
  • The assigned ARN ID card has the name of the AMC. Also have details like a picture of Cardholder, ARN number, address and validity. It is assigned to the companies and individuals involved in Mutual Funds Trading, by the AMFI.
  • The ARN Card is mandatory as it is the only key that allows you to sell mutual funds or advice and recommend fund to the investor.
  • It’s important for your investors to know that you have an ARN Card and you are an enrolled member of the mutual fund industry. As this is the only way you can build the trust of investors and they will know that you follow guidelines of SEBI.
  • The NISM Certificate and ARN Code are valid until 3 years after that its needs renewal.

What do you mean by EUIN?

EUIN is an Employee Unique Identification Number, this helps to get in direct touch with the customer. It means a unique and identification number of an employee, the customer relationship Manager or the distributor is in direct contact with the customer. EUIN number is applicable to all the sales staff of the non-individual ARN holders. This number is given by the AMFI, in addition to the ARN of the Distributor.

The introduction of EUIN by SEBI has a purpose to check sales in the name of the ARN Holder Entity also if Employee, Relationship Manager or Salesperson has left the job with that Distributor.

  • It is a Unique Identity Number of the Employee, Customer Relationship Manager or the Salesperson of the Distributor who is in direct touch with the Client. He/she is the one transacting with the Investor for the sale of Mutual Fund Products. EUIN applies to the Sales Staff of the Non-Individual ARN holders.
  • The ARN Application Form for such entities has to be accompanied by the Application for Registration of corporate employees.
  • The employees will then, clear the test and enrol with AMFI, under the ARN of the employer.
  • They would be declared EUIN Cards with their EUIN, his/her name, photo, and legality period of the EUIN. AMFI gives the EUIN to all the employees, who are enrolled with AMFI and have a confirmed registration. Means Photo ID Card having EUIN is allotted to the corporate employees.

It is necessary to consider this EUIN on the Mutual Fund scheme application forms. Extracting EUIN is necessary while directing transactions.

EUIN Mapping

EUIN issued to the employees continues to be the same. Also, if they shift to some other ARN holder and leave the current employment. After leaving the employment they still are involved in the sales or marketing of Mutual Fund products. To obtain the changes in the AMFI records about the shift in their ARN Holder, they have to present a properly filled Form for Mapping EUIN. The situations to fill this Form have been declared as under:

  • When the EUIN holder has separated from the present ARN holder.
  • He/She has begun own business of sale or purchasing of mutual funds.
  • EUIN holder has switched employment. Also, wants to be outlined to the ARN number of the existing employer.
  • For the removal of EUIN.

Following the situations discussed above, this form is to be presented to CAMS on with the needed documents.

Commission Structure for Mutual Fund Agent

A mutual fund agent can create a revenue source for themselves by the engaging commission formation in place for mutual fund distributors. A mutual fund agent/ distributor can get a commission as shown under the table:

  • Commission from Clients
  • Upfront Commission
  • Trail Commission
  • One-Time Transaction Charge

Entire earnings of Mutual Fund Agent will be Rs. 1,10,972. From the above table, you can understand that the Mutual Fund Agent’s profits are low at the start but drastically enhanced as Asset Under Management raises. One can very completely recognise from this table that the more leading the business you get, the greater are your rewards. Usually, the Banks and National Distributors get rewarded the greatest because of the absolute volume of investments that they get. However, many Independent Mutual Fund Agents have also noticed a growth in their fees and commissions, having developed their businesses in current years.

Frequently Asked Questions

1. How can I prepare to become qualified for NISM Mutual Fund Distributor Program?
If you have any of the mentioned certificates you become qualified for the NISM mutual fund distributor program.

  • NISM Series V(a): Mutual Fund Distributors Certificate Examination
  • NISM Series V (a): Mutual Fund Distributors Continuing Professional Education
  • AMFI Mutual Fund (Advisors) Module
  • IICM &CIEL: Refresher Course on Mutual Funds

And the legality of such licenses has not expired, it makes you available to attend the NISM CPE Program. In an extension of this, if you endure an ARN Card, you are qualified to attend the NISM Course.

2. What do you mean by ARN Code?
ARN means for AMFI Registration Number. It is a different code assigned to know the intermediaries included in the facilitation of the trade of mutual funds NAVs.
3. How to prepare for Nism mutual fund?
The way to prepare for the NISM mutual fund exam :

  1. Choose the Right Exam and Study Material
  2. See the Workbook cover-to-cover
  3. Reap PrepCafe Mocks (Practice Exams)
  4. Enrol Online on NISM Certifications Portal
  5. Clear the Exam
4. What is the minimum age to get ARN?
The minimum age to get ARN code is 18 years.
5. What is the structure of NISM Exam? Is it tough?
The exams are not that much difficult. Its contains 100 MCQs (multiple choice questions) with negative marking of 25%. The exams are held in NISM Test Centres.
6. What is the advantage of NISM certification?
Assists in getting jobs in the capital market. Aside from industry professionals, NISM Certifications can also be taken by students of finance, management, economics and marketing. This assists them to develop their domain experience also serves them better to enter the industry.
7. What do you understand by CAMs?
CAMS means for the Computer Age Management Services Pvt. Ltd. It is an organization which has been approved by the AMFI to be a processing agent on their part.
8. Can a government employee apply to become a mutual fund distributor?
Yes, a government employee can apply to become a mutual fund distributor.
9. When will I receive my NISM certificate?
After NISM checks the authenticity of the documents submitted by the participants, your certificate will be transferred in electronic format only, to the email id given in the Registration form. You are supposed to get the certificate in around 30 working days from the date of the CPE Program.
10. Can senior citizen get a NISM Mutual Fund Distributors Certificate for the first time?
If you have achieved 50 years of age, you may get a NISM Mutual Fund Distributors Certificate by either:

  • Clearing the ‘NISM – Series – V – A: Mutual Fund Distributors Certificate Examination’ (or)
  • Finishing the NISM’s CPE Program for Mutual Fund Distributors