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MFD Karein Shuru Campaign
Mutual Funds Distributors (MFDs) play an important role in ensuring that mutual fund investors select the right scheme and continue to invest as per their financial goal to achieve the objective. However, the total number of MFDs in India is just about 1,00,000, which is very less.
Current mutual funds investor base is about 3 crore and this investor base is expected to grow to 10 crores in next 7-8 years. It is estimated that about 5,00,000 MFDs will be required to cater to this growing investor base.
Realizing this gap, AMFI has launched a campaign to increase the base of mutual funds distributors with the help of industry players including asset management companies. This campaign has been titled as “MFD Karein Shuru”.
How to become a mutual fund distributor?
MFDs are AMFI registered ARN holders who are certified to sell mutual funds to investors.
Before registering with AMFI as ARN holders, such individuals need to pass the NISM-Series-V-A: Mutual Fund Distributors Certification Examination. After passing the exam, such individuals need to register with AMFI and obtain ARN.
Click here to know more details on – How to become a mutual fund distributor
Passing the NISM exam may seem difficult, but here is some good news!
Nivesh is providing comprehensive training and required support for the exam.
Why become a Mutual Fund Distributor?
Becoming a Mutual Fund Distributor (MFD) offers a great opportunity to combine your financial understanding with a passion for helping others in achieving their financial goals. As an MFD, you can play a pivotal role in guiding individuals and their businesses towards making informed investment decisions, building lasting relationships, and creating a sustainable income stream.
Here’s why becoming an MFD can be a rewarding career choice:
- Financial Independence: MFDs have the potential to earn a substantial income through commissions on mutual fund investments. The more clients you serve and the larger their investments, the higher your earnings.
- Flexible Lifestyle: Enjoy the freedom to manage your own schedule and work-life balance. Whether you prefer a full-time or part-time commitment, MFDing can accommodate your lifestyle.
- Career Growth: As you gain experience and expertise, you can expand your client base, specialize in specific investment areas, or even start your own wealth management firm.
- Personal Satisfaction: Witness the positive impact your guidance has on clients’ lives. Help them achieve their financial dreams, whether it’s buying a home, funding their children’s education, or planning for retirement.
- Continuous Learning: Stay updated on market trends, investment strategies, and regulatory changes through ongoing training and education. This not only enhances your professional skills but also contributes to your personal growth.
If you’re passionate about finance, enjoy interacting with people, and are driven to succeed, becoming an MFD could be the perfect career path for you.
Challenges Faced by Mutual Fund Distributors (MFDs)
While becoming an MFD offers numerous opportunities, it’s important to be aware of the challenges that may arise in this profession. Here are some common obstacles faced by MFDs:
- Competition: The mutual fund industry is highly competitive. Differentiating yourself and building a strong brand can be challenging.
- Regulatory Compliance: MFDs must adhere to strict regulations and compliance standards set by the Securities and Exchange Board of India (SEBI). Keeping up with changes in regulations and ensuring compliance can be time-consuming.
- Client Education: Many investors have limited financial knowledge. MFDs must invest time and effort in educating clients about mutual funds, risk management, and investment strategies.
- Product Complexity: Mutual fund products can be complex, with various types, structures, and risk profiles. MFDs need to have a deep understanding of these products to provide appropriate recommendations to clients.
- Technological Challenges: Staying updated with the latest technology trends and using digital tools effectively is crucial for MFDs. However, adopting new technologies can be challenging, especially for those with limited technical expertise.
Despite these challenges, MFDs who are dedicated, knowledgeable, and committed to their clients can build successful and rewarding careers. By understanding and addressing these challenges proactively, MFDs can position themselves for long-term success in the competitive mutual fund industry. Although issues like having limited experience with digital products and dealing with multiple products seems like an intimidating task, partnering with platforms that can help you manage and grow your business with ease.
Benefits of Becoming Mutual Fund Distributor
Becoming MFD can bring a revolutionary change in your life. There are many benefits:
- Provide clients with a variety of investing options. You can start your own business of distribution of mutual funds and other financial products like Bonds, fixed deposits. You don’t have to be dependent on anyone else for earning your own livelihood.
- Life-time income – Mutual fund distribution business provides a good recurring source of income as the commissions on mutual funds are paid on trail basis. Hence, any investment, until it is held by the client, will generate commission income for you every month. Moreover, if the value of investment rises because of the rise in markets, the commission income will also increase. If you start SIP (Systematic Investment Plan) for a customer, every month the investment value will increase and your income will also go up.
- Make money in a trustworthy and transparent manner- You are helping people in your network to manage their wealth and accordingly your stature and reputation also increases in the society. The profession will enable you to gain more respect among your network.
- You will be able to manage your own wealth better and gain financial stability
How Nivesh Helps in Becoming MFD?
Nivesh is a digital-first award winning wealth platform partnering with MFDs to help them manage and grow their business. It helps anyone to become MFD by providing full training and support for passing the NISM exam. Once the person has obtained the ARN, she/he can start his/her MF business with Nivesh right away without any need to empanel with mutual funds or without incurring any cost or investment. The team at Nivesh will help in the entire process.
Benefits of Partnering with Nivesh
An MFD benefits immensely by partnering with Nivesh :
- Access to a large number of products – mutual funds, fixed deposits, bonds, digital gold, insurance, etc. Provide more suitable options to your clients and increase your income manifold!
- No cost to run and manage the business. You just need a smartphone to get started!
- Complete training in different products
- Nivesh platform enables you to suggest the right investment product to a customer on the basis of his / her risk profile, time horizon and financial goal. You can then execute the transaction online from anywhere. Various reports also help you in tracking the investments and suggesting changes from time to time.
- All back-end processes are handled by Nivesh including generation of reports. You can focus on engaging and interacting with your clients.
- Many knowledge sessions are conducted on regular basis to keep you updated on economy and other changes
- Complete support in your business and access to a relationship manager to answer your questions and queries
And many more that you will experience once you join Nivesh
What is AMFI ?
AMFI is the Association of Mutual Funds in India. It is the association of all the Asset Management Companies of SEBI registered mutual funds in India. AMFI was incorporated on August 22, 1995, as a non-profit organization. The objective of AMFI is to define and maintain high professional and ethical standards in all areas of operations of the mutual fund industry in India. Further, it is entrusted to recommend and promote best business practices and code of conduct to be followed by asset management companies. It also undertakes investor awareness programs, disseminates information on mutual funds, conducts research and studies on the mutual funds industry, It also regulates distributors of mutual funds and takes steps for protection of investors.
How to Become an AMFI Member
AMFI has appointed Computer Age Management Services Pvt. Ltd. (CAMS) as its authorized representative to handle the registration process for new members or intermediaries.
Online Registration Process:
- Visit the CAMS website: You can register directly online through the CAMS portal.
- Obtain application and KYD form: Download the necessary forms and fill them out with the required information.
- Submit documents and fees: Along with the completed forms, you’ll need to submit the following documents and registration fees:
- Copy of NISM VA certification
- Copy of Aadhaar Card
- Copy of Pan Card
- Proof of Bank Account
- Two Passport-sized photos
- Registration fees (subject to change; check the AMFI website for the latest amount)
In-Person Registration Process:
If you prefer, you can visit a nearby CAMS branch to obtain the application forms and submit them in person.
Once your registration is complete, AMFI will send you a Letter of Registration and assign a unique ARN (Agent Registration Number).
Key Requirement: NISM VA Certification
To become an AMFI member, you must have passed the NISM VA: Mutual Fund Distributors Certification Examination. This certification ensures that you have the necessary knowledge and understanding of the mutual fund industry to provide professional advice to clients.
What is the National Institute of Securities Markets (NISM)?
NISM is a public trust established by SEBI in 2006 to promote professional development in the securities market. It offers various training programs and certification exams to enhance the quality of services provided in the industry.
SEBI has made it mandatory for anyone involved in selling or marketing mutual fund products to pass the NISM Certification and obtain an ARN or EUIN registration number.
NISM Series V Certification:
The NISM Series V Certification is designed to equip individuals with the knowledge and skills needed to become successful mutual fund distributors. It covers both basic and advanced topics related to mutual funds, sales, and distribution.
There are two levels of certification:
- NISM V-A (Level 1): For individuals who want to start their career as mutual fund distributors.
- NISM V-C (Level 2): For existing distributors looking to enhance their knowledge and expertise.
Level 1: focuses on fundamental aspects of mutual funds, while
Level 2: delves into more advanced topics like fund valuation, performance measurement, and investor service. Now that you are aware of each step involved in becoming an MFD, and dealing with each challenge, Aaj hi Shuru Karein Apna MF Business Nivesh Ke Saath
