How to be Mutual Fund Agent? Why to be a Mutual Fund Agent?

What is the procedure to be a Mutual Fund Agent?

What is commission structure in Mutual Fund industry?

Mutual Fund market is growing at a high speed in India. Mutual fund industry was only 5 lakh crore in 2012 but now as on 2018 it is 23 lakh crore, approx. 500% growth is showing in our country.

Indian investor are now understanding the things like putting money in to banks or insurance is not enough to cope up with the inflation. They need a product where there is no cap on upper side of the ROI. Everyone now a days want to invest in SIP if he/she have to understand of the money management or personal finance. Those who don’t have knowledge about it still now are investing in traditional products.

Who is a Mutual Fund Agent :

Mutual fund agent is a ARN (ALL India Mutual Fund Association – AMFI India) holder person who provide you platform to invest in SIP and other mode of investment in mutual fund. He will help you to complete your KYC and inform you available option in the market for investment.

How to be a Mutual Fund Agent:

You have to pass theNISM-Series-V-A: Mutual Fund Distributors Certification Examination.

The certification is approved by the SEBI. You must have to score 50% to pass the certification during exam. It is a crash course you can book your seat anytime 15^th days before taking the exam. Test will be online with MCQ questions.

SEBI is the regulating authority of mutual fund in our country. SEBI has appointed NISM which is sister concern of the SEBI for investment education.

Go through the link for online registration:

http://www.nism.ac.in/certification/index.php/nism-certifications/mutual-fund/mutual-fund-distributors

What is the commission structure?

Mutual fund agent get twice commission which is very attractive model in the industry. Due to this only some wise people who were selling the insurance earlier now a days selling the mutual funds only.

Types of the commission:

Upfront commission:One-time payment to sell the SIP or any others fund to the client.
Trail Commission: You will get every year how long a person continue with the SIP. It is approx. 1% of the Assets under management – AUM with company.

So if you are able to collect the AUM 1 Crore then your trail income itself would be 10 lakh per annum and for this you no need to do anything again.

Note: To pass the MF certification, get the Agent code you can contact to us or visit our office.

Mr. Sushil Alewa

Sushil Alewa is the Founder & Director of ISFM – International School of Financial Market, established in July 2014 with the aim of bridging the gap between academic finance and real, practical market participation. A Certified Financial Planner - CFP from US (Reg. No. IN 51734) and SEBI Registered Research Analyst (Reg. No. INH100009433) with an MBA in finance, Sushil has spent more than 16 years in the Indian capital markets. His career spans equity advisory and research at Sharekhan, India Infoline, Indiabulls and Religare, followed by HNI portfolio advisory at Anand Rathi Wealth Management — experience that shaped the practitioner-first approach ISFM is known for today. He is an active trader and researcher, and his teaching draws directly from live market work rather than theory alone. His areas of focus include technical analysis, derivatives and options strategies, equity research and fundamental analysis, and investor awareness. Sushil is currently a PhD scholar researching options trading strategies, and regularly conducts investor awareness and financial literacy programs for students, professionals and corporate audiences.