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<br><br>Mutual funds are often associated with a number of myths. However, once you do your research, most of these myths fade. There is another way to clear your mutual fund questions: You can approach a Mutual Fund Distributor. Well, before selecting a dealer, you might want the following questions answered:<br>
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Mutual funds are often associated with a number of myths. However, once you do your research, most of these myths fade. There is another way to clear your mutual fund questions: You can approach a Mutual Fund Distributor. Well, before selecting a dealer, you might want the following questions answered:
1. How qualified and experienced is the dealer? • Understanding mutual fund distributor platform 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 research the type of experience they have. The distributor, be it an individual or a company, must be able to identify and suggest products based on their appetite for risk and their goals. Additionally, you need to understand the different asset classes and be familiar with the processes that need to be followed at each investment step.
1. How qualified and experienced is the dealer? • Understanding mutual fund distributor platform 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 research the type of experience they have. The distributor, be it an individual or a company, must be able to identify and suggest products based on their appetite for risk and their goals. Additionally, you need to understand the different asset classes and be familiar with the processes that need to be followed at each investment step.
2. What is the rollback time of the dealer? • Considering that you have made the investment decision based on the advice of the dealer, your accessibility is very important. Any questions you have regarding your investments should be answered by the dealer or his 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.
3. Does the dealer offer comprehensive services? • Finances 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.
4. How do I verify your history? • Currently, there is no formal rating or rating system for distributors in India. Therefore, you will need to research some basic facts about the dealer. Finding out in what areas you have worked and what kind of knowledge you have could be a good indicator. Also, a dealer 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 for references from your family or friends.
5. Who pays the dealer? • The distributor plays an important role in helping the investor on their financial journey by suggesting products, putting together a financial plan based on investors' risk appetite, future needs, and goals through online platform for mutual fund distributor. So there are a couple of ways the dealer can be compensated. If you use a distribution model, the fund houses that you suggest you invest in pay you a commission for each 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.
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