Build a Career in Mutual Fund Distribution

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Build a career in mutual fund distribution | Become Mutual Fund Agent

Assets Under Management (AUM) of Indian Mutual Fund Industry as on September 30, 2021 stood at ₹36,73,893 crore.
The AUM of the Indian MF Industry has grown from ₹ 6.42 trillion as on September 30, 2011 to ₹36.74 trillion as on September 30, 2021 more than 5½ fold increase in a span of 10 years

MF assets are still highly under-penetrated in India, and both commission-led distribution and fee-based advisory businesses can co-exist.

A recent Jefferies report states that assets under management of MFs are just 12 percent of India’s GDP, whereas the global average is 63 percent.
Other developing nations such as Brazil (68 percent of GDP) and South Africa (48 percent of GDP) have much higher proportions of mutual fund investors.

So, as a Mutual Fund Agent, your job profile would be:

Educating the Investor

Evaluating Risk Tolerance

Analysing Investment Options
equity mutual funds, debt mutual funds or money market instruments.

Devising an Investment Strategy
The investor’s portfolio requires a frequent assessment. The assessment is necessary because the client’s goals might change. Therefore, the distributor must keep a close watch on the client’s portfolio and suggest modifications as and when required.

Any individual above the age of 18 years can act as a mutual fund distributor or agent. Also, the candidate should qualify for class 12 or class 10 with three years of diploma. The minimum requirement to become a mutual fund distributor is the completion of NISM Series V-A: Mutual Fund Distributors Certification. Upon passing the NISM Series V-A: Mutual Fund Distributors Certification Examination’, (National Institute of Securities Markets) NISM will issue an ARN number which will make the individual eligible to sell mutual fund products.After ARN is received from AMFI, the distributor needs to empanel themselves with Asset Management Companies (AMC’s)

Trail is the commission that will be paid by the AMCs to agents on the first sale of their mutual fund plans. It is included in their total expenses. The mutual fund agent will receive it whenever a fresh investment is completed. This commission amount varies from plan to plan.

MF distributors received Rs 6,617 crore in 2020-2021, which was just 7.6 percent higher than the previous financial year.
In contrast, the MF industry’s asset size grew by 41 percent to Rs 31.42 trillion in 2020-2021.

To cut the cost of investing, SEBI linked expense ratios with asset slabs in September 2018. This essentially forced schemes with higher asset size to charge lower expense ratios

Neeraj Choksi and Jignesh Desai, co-founders of one of the country's largest mutual fund distributors
India’s largest mutual fund distribution firm, with earnings of Rs 874 crore in financial year 2020-21 started own mutual fund house of its own.

When private companies were just entering MF industry in the mid-90s, NJ India’s co-founders Neeraj Choksi and Jignesh Desai started distributing MF schemes from their office in Surat.

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