Definition:
An individual or an entity facilitating buying and selling of units of mutual fund by investors. A distributor earns upfront/trail commission for bringing in investors into the mutual fund schemes.
Duties and Responsibilities:
Performing a research before making an investment is a must. It is only after a thorough research that you can make some assumptions into the value and future performance of an investment. Even if you are following stock trading tips, it ideal to do some research, just to ensure that you are making an investment that’s expected to get you maximum returns.
Qualifications:
While any individual above the age of 18 years can act as a mutual fund distributor, most corporate entities look for graduates with basic knowledge in mutual funds. Product training is also provided by corporate entities before registering as mutual find distributor
To start a career as mutual fund distributor the minimum requirement is NISM Series VA Mutual Fund Distributors Certification and a registration number from the Associations of Mutual Funds in India (AMFI).
SEBI has made mandatory for any entity or person engaged in marketing and selling of mutual fund products to pass NISM Certification and obtain ARN/Employee Unique Identification Number (EUIN) registration number. The certification is valid for 3 years from the date of examination.
