How it works ?
Complete this purchase process our executive wil contact you with all details i.e documents required, time line , price etc
=========================================
A Mutual Fund Distributor License is required for individuals or entities that want to act as intermediaries in distributing mutual fund products to investors. Mutual fund distributors promote and sell mutual fund schemes of various asset management companies (AMCs) to customers. In India, this license is regulated by the Securities and Exchange Board of India (SEBI).
Key Features of the Mutual Fund Distributor License:
Role of Mutual Fund Distributors:
- Act as intermediaries between the asset management companies (AMCs) and investors.
- Help clients select suitable mutual fund schemes based on their financial goals and risk tolerance.
- Assist in the completion of mutual fund transactions, including filling out forms, KYC (Know Your Customer) procedures, and guiding clients through the investment process.
Revenue Model:
- Mutual fund distributors earn commissions or brokerage from AMCs for distributing their mutual fund schemes. These commissions may be upfront (at the time of investment) or trail commissions (ongoing commissions based on the assets under management, or AUM).
Compliance and Regulations:
- Distributors must adhere to SEBI's Mutual Fund Regulations and the Code of Conduct outlined by SEBI, which ensures that they act in the best interests of investors.
Eligibility Criteria for Mutual Fund Distributor License:
Individual/Corporate Entity:
- Both individuals and corporate entities can apply for the distributor license.
Educational Qualifications:
- A minimum of 12th grade education is required for individuals applying as distributors.
- Professional qualifications such as NISM Mutual Fund Distributors Certification are mandatory for registration.
Certification:
- Distributors must have passed the National Institute of Securities Markets (NISM) Mutual Fund Distributors Certification Examination or an equivalent exam recognized by SEBI.
Experience (optional but beneficial):
- While experience in the financial services industry is not a mandatory requirement, having prior knowledge or experience in mutual funds or financial planning can be beneficial.
Registration with AMCs:
- The distributor needs to be registered with one or more Asset Management Companies (AMCs) for the purpose of distributing their mutual fund schemes.