A mutual fund fistributor (MFD) is a licensed professional or entity that helps investors buy, sell, and manage mutual fund investments. They act as intermediaries between the mutual fund companies and investors, guiding clients based on their financial goals and risk appetite.

What Does a Mutual Fund Distributor Do?

• Recommends suitable mutual fund schemes

• Assists in onboarding and KYC

• Provides after-sales service, like portfolio updates

• Educates investors about risks and returns

• Helps with switching or redeeming units

How to Become a Mutual Fund Distributor?

1. Pass the NISM Series V-A exam

2. Register with AMFI (get ARN - AMFI Registration Number)

3. Tie-up with AMCs (Asset Management Companies) or platforms

4. Start distributing mutual funds and earning commissions

Earnings of a Distributor

Distributors earn through:

• Upfront commissions

• Trail commissions (based on assets under management)

Why Investors Use MFDs

• Personalized investment advice

• Convenience in documentation

• Regular tracking and support

• Help in goal-based investing

Conclusion

A Mutual Fund Distributor plays a key role in simplifying investing for individuals. They bridge the gap between complex financial products and everyday investors by offering guidance, service, and support.