InvestorQ : How can I start a mutual fund business?
Nikita Damle made post

How can I start a mutual fund business?

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ananya Sing answered.
2 months ago
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It is possible, but it would require a lot of juggling from your side. The procedure to have a registered mutual business is as follows-
To become a Mutual Fund Distributor, you would have to get registered with the AMFI (Association of Mutual Funds in India) after passing the NISM Certification Test.

  • You need to clear NISM V- A mutual fund exam. You need to clear that exam with 50% marks.
  • After registration, you would be issued a Unique Code – ARN Code (AMFI Registration Number).
  • There are two options than to become a distributor to earn commission
1) If you want to be independent and want to take the whole share of the commission given by AMCs, you will have to impanel with individual AMCs. Just visit their website and enroll online. It's very simple. You can impanel with all major AMCs in less than an hour.
2) If you want it easy and one point of contact for submission of forms along with a good IT system for viewing portfolios of the client, then impanel with one of the major MF distributors like NJ India, Prudent, and some others (Google ‘MF Distributors’). But they take at least 25% of your commission for service they provide (maybe more or less). You become a sub-broker in this case.
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