Who is a Mutual Fund Distributor?
Who is a Mutual Fund Distributor?
Blog Article
A mutual fund distributor (MFD) is a financial professional or entity authorized to sell mutual fund schemes to investors. They act as a bridge between mutual fund companies (AMCs) and investors, helping individuals choose the right funds based on their financial goals.
Role of a Mutual Fund Distributor
✅ Recommends suitable mutual fund schemes
✅ Assists with investment planning
✅ Helps with KYC and paperwork
✅ Tracks and reviews portfolio performance
✅ Educates investors about risks and returns
How to Become a Mutual Fund Distributor?
Pass the NISM Series V-A Exam
Register with AMFI (get ARN – AMFI Registration Number)
Empanel with mutual fund houses
Start offering services to clients
Earnings of a Mutual Fund Distributor
MFDs earn through commissions from mutual fund companies, which include:
Upfront Commission (on fresh investments – now limited)
Trail Commission (recurring income based on AUM – Assets Under Management)
Why Investors Prefer MFDs?
Simplified investment process
Personalized guidance
Regular updates and reviews
Better understanding of products
Conclusion
A mutual fund distributor plays a key role in guiding investors on their financial journey. For those who are not well-versed in markets, MFDs make investing easier, more structured, and goal-oriented.
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