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What should you know about your Mutual Fund Distributor?

<br><br>Mutual funds are often associated with a number of myths. However, once you do your research, most of these myths disappear. There is another way to clear up your mutual fund questions: You can approach a mutual fund dealer. Well, before selecting a dealer, you might want the following questions answered:<br>

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What should you know about your Mutual Fund Distributor?

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  1. What should you know about your Mutual Fund Distributor?

  2. Mutual funds are often associated with a number of myths. However, once you do your research, most of these myths disappear. There is another way to clear up your mutual fund questions: You can approach a mutual fund dealer. Well, before selecting a dealer, you might want the following questions answered:

  3. Mutual funds are often associated with a number of myths. However, once you do your research, most of these myths disappear. There is another way to clear up your mutual fund questions: You can approach a mutual fund dealer. Well, before selecting a dealer, you might want the following questions answered:

  4. 1. How qualified and experienced is the dealer? • Understanding mutual fund platform for distributors and schemes, suggesting asset allocation strategies, and knowing how portfolio changes affect you requires experience. Therefore, it is imperative that you check how knowledgeable your dealer is and also investigate the type of experience they have. The distributor, an individual or a company, must be able to identify and suggest products based on their appetite for risk and their objectives. In addition, you must understand the different asset classes and be familiar with the processes that must be followed at each step of the investment.

  5. 2. What is the distributor rollback time? • Considering that you have made the investment decision based on the advice of the dealer, its accessibility is very important. Any inquiries you have regarding your investments should be answered by the dealer or their company within a reasonable time. Time is an important element in financial services and the dealer should be able to speed up the application process. It must be accessible in person, by email or by phone.

  6. 3. Does the dealer offer comprehensive services? • Finance and investing are confidential topics, and investors generally don't feel comfortable discussing them with too many people. Therefore, it is advisable to take advantage of the services of the distributor who is unbiased, can offer you products from all fund houses, and will handle your investments with confidentiality.

  7. 4. How do I check your past history? • Currently, there is no formal grading or ranking system for distributors in India. Therefore, you will have to do some basic research on the dealer. Finding out in what areas you have worked and what kind of knowledge you have could be a good indicator. Also, a distributor who has been through a few market cycles can be a way to verify his credentials. Also, in today's digital world, it's not very difficult to run a background check. You can use social media and read what others have to say about him. You can also search for references online and ask your family or friends for references.

  8. 5. Who pays the distributor? • The online platform for mutual fund distributor plays an important role in keeping the investor on their financial journey by suggesting products, putting together a financial plan based on investors' risk appetite, future needs, and goals. So there are a couple of ways the dealer can be compensated. If you use a distribution model, the fund houses that he suggests you make your investments in pay him a commission for every investment you make. Some distributors may charge you a fee for the time they spend, understanding your requirements and suggesting a plan. There are also quite a few free online portals that collect investor data and suggest a financial plan. • Investments in mutual funds are subject to market risks, please read carefully all documents related to the scheme.

  9. CAMS 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 August 2021. We also provide technology enabled service solutions to Alternative Investment Funds and Insurance Companies. • Website - https://edge360.camsonline.com/signin About Us

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