1 / 10

Everything You Need to Know About Mutual Fund Distributor

<br>Investing in mutual funds requires a good understanding and knowledge. Today, investors can get all the information related to mutual funds online. Investors can also compare different funds. However, a mutual fund distributor can help an investor put things into perspective for them.<br>

21439
Download Presentation

Everything You Need to Know About Mutual Fund Distributor

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Everything You Need to Know About Mutual Fund Distributor

  2. Investing in mutual funds requires a good understanding and knowledge. Today, investors can get all the information related to mutual funds online. Investors can also compare different funds. However, a mutual fund distributor can help an investor put things into perspective for them.

  3. Here in this article, we will provide you with a comprehensive guide to mutual fund dealers along with their qualifications, roles, and responsibilities. We will also help you understand how to become a mutual agent and how to take the mutual fund agency.

  4. Who is a mutual fund distributor? • A mutual fund dealer is one who assists in buying and selling mutual funds in India for their best online platform for mf distributor. Mutual fund dealers earn commissions by attracting investors to the mutual fund scheme. They also advise investors on the various schemes of different mutual fund houses. All mutual funds are registered with SEBI (Securities and Exchange Board of India) and are therefore considered safe. Additionally, mutual fund dealers help investors conduct investment transactions. These transactions include investing, switching between mutual funds, or redemption. They also regularly guide investors on the performance of their investment.

  5. The mutual fund platform for distributors dealer is also known as a mutual fund broker. The mutual fund broker must keep track of the operation and performance of the mutual fund industries. Also, this type of mutual fund broker needs to conduct qualitative and quantitative analysis using databases and monitor fund information regularly. In addition, they must be on the lookout for essential developments in the mutual fund industry, markets, and the economy. • Additionally, mutual fund dealers coordinate and collaborate with mutual fund houses from time to time. This will help them identify the various investment options for their investors. In addition, this allows them to create a database with fund recommendations and conclusions.

  6. What are the qualifications of a mutual fund distributor? • Any individual over the age of 18 can act as a mutual fund dealer or broker. In addition, the candidate must qualify for class 12 or class 10 with three years of diploma. • The minimum requirement to become a mutual fund distributor is to complete the NISM Series V-A Mutual Fund Distributor Certification. For any entity or person that is dedicated to the commercialization and sale of mutual funds, SEBI has established the obligation to approve the NISM Certification. • Upon passing the NISM Series V-A: Mutual Fund Dealer Certification Exam, (National Institute of Securities Markets), the NISM will issue an ARN number that will make the individual eligible to sell mutual fund products. Along with this, they also receive an Employee Unique Identification Number (EUIN) registration number. The NISM certification is valid for three years from the date of the exam.

  7. After receiving the ARN from AMFI, the online platform for mutual fund distributormust identify with the asset management companies (AMC), whose products it would like to sell. For the splicing process, including documentation, dealers can visit AMC's websites. In addition, the AMC will provide the necessary training material, marketing material and guide distributors for sales. Finally, they also pass on the sales commission to the distributors. • In the event that the mutual fund distributor platform is not an individual, all members of the company's sales staff will be ARN holders. Basically, people who advise investors for mutual fund investing will need to have EUIN. • In case seniors wish to become mutual fund distributors or mutual fund agents, they should attend the CPE (Continuing Professional Education) program training module. Those who complete the CPE (Continuing Professional Education) program will need to complete the documentation process to apply for ARN as mentioned above. • Also, many insurance agents sell mutual funds after obtaining ARN from AMFI.

  8. Know your dealer's guidelines (KYD) • To curb financial fraud committed against investors by mutual fund dealers or their employees, AMFI has initiated specific criminal actions. These actions include suspension for ARN holders, advising all AMCs to suspend the payment of a commission, follow-up commission, incentives, etc. To control this fraud, SEBI (Securities and Exchange Board of India) has advised AMFI to tighten the procedure for the registration of distributors. . Therefore, the current, more stringent registration procedure for mutual fund distributor platform is known as Know Your Dealer (KYD). The KYD process involves obtaining relevant documents and validating those documents, personal verification, and biometrics. • AMFI has started the KYD process for mutual fund distributors with effect from September 1, 2010. KYD (Know Your Dealer) is very similar to KYC (Know Your Customer) for investors. Requires distributors to present proof of identity, proof of address, PAN and bank account details with mandatory evidence. In addition, it has also introduced biometrics as part of the KYD process.

  9. The prescribed form for KYD is also available under the "Dealer Related Forms" tab in AMFI. In addition, update forms such as change of address, contact details, bank details, etc., are available on this tab. • AMFI has decided to use CAMS services for the KYD process, including biometrics. They can carry out this process through their centers called "CAMS POS". This would help to have better control of the movement of documents and data. Therefore, a mutual fund dealer / broker is required to apply for KYD. Also, simultaneously the need to present the ARN registration application.

  10. About Us • CAMS edge360 is a technology driven financial infrastructure and services provider to Mutual Funds and other financial institutions for over two decades.  As the market leading Registrar and Transfer Agency to the Indian Mutual Fund industry, CAMS serves ~ 70%* of the average assets under management - as of December 2020. We also provide technology enabled service solutions to Alternative Investment Funds and Insurance Companies. Besides serving as a B2B service partner, CAMS also serves customers through a variety of touch points such as pan-India network of service centres, white label call centre, online, mobile app and chatbot. • Website - https://edge360.camsonline.com/signin

More Related