How to Become a Mutual Fund Distributor in India 2025

The mutual fund industry has expanded manifolds in the last decade. From a total AUM of Rs 2 lakh crore a decade ago, the figure crossed Rs. 68 lakh crores in 2024! With a growing number of investors taking to capital markets, the mutual funds industry is poised for further growth and expansion and so will the need for qualified professionals helping households make their first foray into mutual funds.

Are you passionate about investing and finance? Do you have a knack for guiding people to make sensible financial decisions? If yes, you can become a mutual fund distributor, lead your clients into a brighter financial future, and earn handsome commissions.

Read this article to get complete information on how to become a mutual fund distributor in India or how to become a mutual fund agent online, including the process, requirements, and benefits.

What is a Mutual Fund Distributor?

A mutual fund distributor is an intermediary between mutual fund houses and investors who provides assistance to investors in buying and selling mutual fund units. An MFD is qualified to advise on mutual funds and is registered with AMFI. MFDs are regulated by SEBI and AMFI.

AMFI provides necessary tools and resources to registered MFDs so that they are well-equipped to assist investors.

Mutual Fund Distribution can be a viable and fulfilling career option for anyone seeking to be a part of the growing financial services and investments sector in India, whether you are a graduate, retired professional, or looking forward to being your own boss. With knowledge, experience, and required certification you can pursue mutual fund distribution as an Independent MFD as a full-time professional or even on a part-time basis. Unlike other ventures, mutual fund distribution requires no monetary investment, your dedication determines your success.

How to Become Mutual Fund Distributor

• SEBI has mandated that any person who wants to become a Mutual Fund Distributor needs to pass ‘NISM Series V- A: Mutual Fund Distributors Certification Examination’ conducted by National Institute of Securities Markets (NISM).

• MFD aspirants need to register with AMFI and obtain an AMFI Registration Number (ARN).

• MFDs need to be empaneled with AMCs or online mutual fund distribution platforms like Rupeezy.

• Engage your clients, review their current investments, assess their risk profile, and financial goals, and advise suitable funds.

• Expand your client base and earn more with Rupeezy.

• Non-individual entities applying for ARN should have at least one employee/sales personnel to pass the NISM examination and register with AMFI & obtain Employee Unique Identification Number (EUIN), to be eligible for allotment of the ARN.

NISM Series V-A: Mutual Fund Distributors Certification Examination

The first step to becoming an MFD is to pass the NISM Series V-A: Mutual Fund Distributors Certification Examination conducted by the National Institute of Securities Markets (NISM). 

What is NISM (National Institute of Securities Markets)

Established by SEBI in 2006, NISM is the apex body that regulates and licenses the financial dealings profession in India. It offers a variety of courses to market participants, students, and the general public for capacity building and skill enhancement in securities markets.

What is NISM Series V-A: Mutual Fund Distributors Certification Examination

NISM Series V-A Mutual Fund Distributors Certification Examination certifies mutual fund distributors as a benchmark for a common minimum knowledge for anyone involved in selling and distributing mutual funds.

The certification examination prepares MFDs to

• Learn about the basics of mutual funds, different types of mutual fund schemes, features, objectives, and structure.

• Understand how mutual funds are distributed in the market, how MFD can evaluate and analyse schemes, and how to advise suitable products and services to investors.

• MFDs are acquainted with the legal, accounting, valuation, and taxation aspects involved in mutual fund distribution.

• Understand the basics of financial planning and plan investment in mutual funds, so that MFDs cater to clients’ overall financial requirements and not just a one time transaction to build long term clientele.

Exam Details

The Mutual Fund Distributors examination has 100 questions of 1 mark each and the time limit to complete the exam is 2 hours. You need to secure a 50% score to pass the exam and there is no negative marking.

The exam registration fee is approx Rs. 1500. A passing Certificate is issued only to those candidates who have updated their PAN number in their registration details.

You can register at https://certifications.nism.ac.in/nismaol/Candidate/UserRegistration.aspx

Or reach out to us and we will take care of your registration.

Relaxation for Persons under ‘Grandfathered’ Category

As per SEBI regulation, persons who, as of May 31, 2010, have either (a) attained the age of 50 years Or (b) have at least 10 years of experience in the securities markets in the sale or distribution of mutual fund products can obtain the NISM certification either by passing the NISM certification examination or earn classroom credits by attending a one-day CPE program conducted by NISM or its accredited service providers. 

How to Apply for AMFI Registration 

Once you clear the MFD certification examination, you need to obtain an AMFI Registration Number (ARN) by paying the required registration fee.

The process is simple, it is a paperless online registration process through the AMFI website.

You can visit https://www.amfiindia.com/distributor-corner to apply for ARN click on ‘Online Registration’ and complete the mentioned steps.

PAN and Aadhaar are mandatory to apply for ARN.

Eligibility to Apply for ARN

• You should be at least 18 years of age and should have the certificate for having passed NISM Series V- A: MFD Certification Examination.

• You must have a PAN and Aadhaar to complete the KYD and registration process.

• A non-individual entity applying for ARN should have at least one employee who has passed the NISM examination and a valid EUIN, to be eligible for allotment of the ARN. 

• There are various documents required for different categories of non-individual distributors, along with the PAN and Aadhaar of the authorised person(s).

Mandatory AMC Empanelment 

An MFD must be formally empanelled with AMC before selling mutual funds to any prospects or investors, even if they have cleared the MFD certification exam and obtained ARN.

Commission Structure

Mutual fund distributors earn commission from the AMCs they empanel with, on the mutual fund investments they solicit under the regular plans of mutual fund schemes. The commission is as per the AMC’s commission structure.

SEBI has permitted trail commissions on mutual fund assets managed by distributors, any upfront commissions are not permitted.

Role and Responsibilities of a Mutual Fund Distributor

Building Awareness

MFDs contribute to the mutual funds landscape by creating awareness and disseminating information about mutual funds as an asset class. They play an important role in reaching out to 

prospective investors help them participate in capital markets and generate long-term investment appreciation through mutual funds.

Assessing Investor Requirements

MFDs do not simply sell schemes but engage with investors to understand their risk tolerance, financial plan, current portfolio of funds, and expectations. This helps them advise appropriate schemes to match investors’ needs.

Portfolio Planning

MFDs explain different categories of funds available for investing, benefits, past performance, and risks, and help investors select the right funds. They explain the charges and other costs associated with every option. 

Support

MFDs assist clients in completing mutual fund investment documentation, they also maintain records securely. They also assist in switching, change in personal details, and sale of units.

Become a Mutual Fund Distributor with Rupeezy

Rupeezy is a growing fintech offering a comprehensive investment platform with over two decades of presence and serving 1.5 million traders across India. Rupeezy offers mutual funds, stocks, derivatives, and commodities integrated into a single app with advanced trading tools developed by a sharp team of in-house developers.

• Smart User-friendly app: Rupeezy mutual fund offering includes advanced analytical tools that help investors choose from over 1500+ schemes and 40+ AMCs. Features such as MF Lab, Risk Return Graph, and Portfolio Overlap, make investing in mutual funds simple and logical.

• Attractive Commissions: Rupeezy offers 100% commission sharing at 0 registration fees.

• Free MFD Training Masterclass: Rupeezy offers free two weeks’ masterclass that covers cracking NISM MFD Certification, equity and mutual funds understanding, business expansion, client acquisition, and building a social media presence.

• Business Support: Rupeezy will support your business expansion with quality leads every week to help you rapidly grow your business to 100+ clients quickly.

• All-in-1 Mobile Dashboard: Rupeezy has designed an All-In-One dashboard to manage leads & clients. You can keep close track of client portfolios & payouts through a single screen.

• Dedicated Relationship Manager: Manage your business with dedicated Rupeezy RM support for quick client query resolution and marketing support on a call or a simple WhatsApp.

• Full ARN Fees Refund: Get Rs. 5,000 on attaining Rs. 20 lakhs AUM or Rs. 50k SIP in 6 months.

• Wide Product Range: Earn higher commissions by offering more products from Rupeezy such as stocks, F&O, commodities, etc.

Conclusion

Mutual Fund Distributor or MFD is a lucrative option for anyone interested in advising clients and prospects on mutual fund investing. To become a mutual fund distributor, you need to clear the NISM Series V- A: MFD Certification Examination, obtain an ARN number from AMFI, and empanel with AMCs. The process is completely online and convenient.

FAQs

Q. Who is a mutual fund distributor?

A mutual fund distributor is a qualified professional who assists investors in buying and selling the best mutual funds suitable for their financial needs.

Q. Is it worth becoming a mutual fund distributor?

A growing financial services industry in India offers lucrative opportunities for financial advisors and mutual fund distributors.

Q. What are the qualifications for a mutual fund distributor?

Individuals over the age of 18 can become mutual fund distributors. You need to clear the NISM Mutual Fund Distributor Certification exam and have a thorough understanding of mutual funds and financial advisory to qualify as an MFD.

Q. How do I start a career as a Mutual Fund Distributor?

You can start your career as an MFD with Rupeezy. The first step is to register for and pass the NISM Mutual Fund Distributors Certification exam. You must build thorough knowledge about mutual funds and advisory and business skills.

Q. How much commission does a mutual fund distributor get?

MFD commission depends on the AMC’s commission structure and the type of fund. Empanel as MFD with Rupeezy and earn 100% commission sharing.