How to apply for licence to sell mutual funds and systematic investment plans?

 

Talking on Mutual Fund agent is necessary because currently, Mutual Fund has become a very popular method of investment. Therefore, people who want to invest prefer to invest in these types of funds so that they will be able to earn on their investment. But not everyone can sell mutual funds to customers. To sell Mutual Funds individually, one needs to become a Mutual Fund agent or distributor. So today how can we become a mutual fund agent or distributor through this article of ours? Will try to give detailed information on the subject. As we have seen that middlemen have a big role in selling a product or service in our country India, in the same way, agents also play an important role in selling mutual funds. Therefore, it is necessary that a person aspiring to become a Mutual Fund Agent should have the highest standards of morality besides knowledge. So that people's trust can grow on it and they can agree to invest their hard-earned money through it. Before we know how to become a mutual fund agent or distributor, let's know who these are.

 

There is a difference between a mutual fund agent and a registered investment adviser because where the mutual fund agent or distributor earns by selling the mutual fund. The same registered investment adviser earns a person through an amount charged as a fee in exchange for investment advice. It is to say that the person who usually works to sell mutual funds to people is called Mutual fund agent or distributor.

 

Some of the major advantages of becoming a mutual fund agent is as follows.

 

-By becoming a mutual fund agent, any person can raise another source of their earnings.

 

-Since presently common people are also willing to invest in mutual funds, so there are opportunities to earn in it. Therefore Mutual fund agent can earn not only for running his home but also for earning his dream.

 

-Once a customer is made, he keeps investing for a certain period, thus the agent can also earn passive income.

 

-By becoming a mutual fund agent, a person can earn his income by working full time or part-time independently.

 

-This job is slightly different from the job, just like how much work in a job gets a certain amount of salary. Whereas the person can do good work in it, he will also be able to earn his good. Which will help the person to get endurance satisfaction.

 

-Mutual fund agent can start his own business even on a large scale and can play an important role in giving employment to people.

 

Eligibility Criteria to become a Mutual Fund Agent

 

However to become a Mutual fund agent one needs to clear the AMFI exam which is conducted by the National Institute of Securities (NISM) market. But to appear in this examination, the candidate should have some qualifications, whose details are as follows.

 

- The candidate must be at least 18 years old of age.

 

- Candidates should have passed at least twelfth.

 

- Candidates who are the tenth pass and have a diploma of three years are also eligible to become Mutual Fund agents.

 

How to become a mutual fund agent

 

At present, Mutual Fund has come up as a great option to invest in it, one can invest very little investment i.e. 500 rupees. Now that this method of investment is becoming prevalent, the need for Mutual Fund agent is also increasing in the country. That's why people often try to know how they can start selling mutual funds. How they can become mutual fund agents or distributors.

 

1. First register for NISM Series V-A

 

The person who wants to become a Mutual Fund agent first has to register himself for the NISM Series v-A exam. This examination is conducted by the National Institute of Securities Markets (NISM) in more than 150 cities of different states. Since it is a certification examination, a fee of about Rs. 1500 is also prescribed for it. Interested person can also register himself online through this official link. And the complete information and guidelines related to registering is given on this page of National Institute of Securities (NISM). After online registration, all further information is sent to the candidate's e-mail.

 

2. Pass the NISM Seriesv-A Exam

 

24 hours after online registration, enrollment and payment of fees, the candidate can log in to this official portal and download a soft copy of the study material. Because after paying the fees, the link to download the study material is added in the candidate's dashboard. The candidate can also buy the NISM Series V-A Exam book from any other portal or website or book store. Generally in this exam, 100 questions are asked from the candidate which is of full 100 marks. The candidate is required to score at least 50% to pass this exam or become a Mutual Fund agent. And the candidate gets two hours to answer these hundred questions. The certificate that the candidate gets after passing the examination is valid for three years. To renew that certificate, the candidate needs to pass the relevant exam again before the expiry of the certificate.

 

3. Get ARN from Mutual Fund Association

 

A candidate desirous of becoming a Mutual Fund agent should have to register himself with the Mutual Fund Association after passing the NISM Exam and obtaining a certificate. Only agents registered with the Mutual Fund Association in India are considered authorized to sell mutual funds, which is why the ARN Number is issued to each registered Mutual Fund agent or distributor by the Association of Mutual Funds in India. We have described the qualifications required to register in AMFI in the above sentences. As far as the full form of ARN is concerned, its full form is AMFI registration number. The AMFI registration form can be downloaded through the official website of the Mutual Fund Association. Apart from this, the Mutual fund agent can also apply to get ARN online.

 

4. Agreement with Mutual Fund House

 

After obtaining the AMFI Registration Number, the person becomes a registered Mutual Fund agent but does not have his own product to sell to the customers. In such a situation, its next step is to enter into an agreement with a mutual fund house or asset management company. There is not one but many mutual fund houses in India, so the agent should try to enter into an agreement with the same company with which he believes that he will be able to sell more funds under the plans of that company. Because the more funds the agent will be able to sell, the more he will be successful in earning his own money. Mutual fund agents will be given a commission amount for selling mutual funds as per the agreement by the fund house. Apart from this, the agent can also be given some incentive from time to time by the Mutual Fund House in case of good performance.

 

Earnings by becoming a mutual fund agent

 

After becoming a mutual fund agent, one needs to work hard to sell the mutual fund. It is to say that just becoming a Mutual Fund Agent is not enough from the point of view of earning but in order to earn, the agent needs to sell more and more products so that he can earn more and more. Yes, but after this, if the entrepreneur wants, he can do this part-time and if he wants full time also, but the earning will be only when Mutual fund agent will be able to sell the mutual fund.