How To Be Mutual Fund Distributors

Mutual Fund distributor is an individual or an entity clearing the way for buying and selling units of mutual funds by investors. A distributor earns upfront/trail commission for bringing the investors into the MF schemes.

Role Of MF Distributors

A mutual fund agent or distributor is an entity responsible for marketing and selling the best Mutual Fund plans.  These types of Mutual Funds India distributors are also known as underwriters for the fund.

The distributor is responsible for the following:

  • Creating prospectus for the mutual fund,
  • Develop extensive marketing campaigns (tv, internet, magazine),
  • Sell the units directly to the public, and
  • Provide a wholesale market to reach a larger number of investors.

Must Read:Types of mutual funds in India

Various Types Of MF Distributions

Securities within the mutual funds may generate capital gains or earn dividends throughout the year. In addition, MF needs to distribute any net capital gains and accrued income to its shareholders on an annual basis.

These distributions can either reinvest back into the fund or paid out, but the choice will not affect the taxable status of the distribution. Distributions made by mutual funds agent within a tax-advantaged account such as an IRA(Individual retirement account) or 401(k) are not taxable.

There are four basic types of mutual fund distributions:

  1. Capital Gains
  2. Dividends
  3. Interest
  4. Return of Capital

FAQ’s Related To Mutual Fund Distributors

Q1. Am I eligible for NISM Mutual Fund Distributors CPE Program?

If the person is having the following certificates:

(a) NISM Series V (a): Mutual Fund Distributors Certificate Examination

(b) NISM Series V (a): Mutual Fund Distributors Continuing Professional Education

(c) Association of Mutual Fund in India(AMFI)  Mutual Fund (Advisors) Module

(d) IICM: Refresher Course on Mutual Funds

(e) CIEL: Refresher Course on Mutual Funds

such certificates are still valid, you are eligible to attend the NISM Mutual Fund Distributors CPE Program. You cannot attend the CPE Program under the General Category, twelve months prior to the date of expiry of the certificates. You can attend the CPE Program only when you are in the final year of your certificate validity period. If you have a valid ARN Card, whether holding any of the above-mentioned certificates or not, you are can attend the NISM Mutual Fund Distributor or Agent under the General Category, twelve months prior to the date of expiry of the ARN Card.

If you are above  50 years of age or have worked for 10 years or more as a distributor, agent or employee or engaged in the sale and distribution of Mutual Fund products, you can to attend the NISM Mutual Fund Distributors CPE Program under the Grandfathered category

Mutual Fund Distributions

Learn about:  Mutual Funds Benefits

Q2.What is the right time to register for a CPE Program?

Since there are only a few seats for every CPE Program. You need to avail the opportunity of registering early so as to secure a seat. We suggest you register at least six months prior to the expiry of the certificate in order to ensure that you get a seat in your location. Requests for registration received closer to the expiry of the certificate may be successful, maybe not.

Q3. How can I register for a CPE Program?

You can contact a NISM Accredited CPE Provider through phone or email and approach them with a filled CPE Registration Form.  A list of the forthcoming Mutual Fund Distributor CPE Programs is present on our website.

Please keep the following information handy while making a call for registration to the CPE Providers:

  • Name and Address,
  • PAN Card,
  • Current Certificate Name,
  • Current Certificate Number and Expiry Date,
  • CPE Location,
  • Phone Number,
  • Email id.

Q4. What should I do after the registration via email or call?

NISM and its Accredited CPE Providers receive registration requests from different cities. When the minimum number of requests are received from a particular region, a CPE Program needs to be arranged by the respective CPE Provider in a proper location. According to your collective requests and preferences, the CPE venue and dates are set and the seat confirmations with all the relevant details are sent to the registered participants.

Q5. What if there are very few people interest in NISM’s CPE Program for Mutual Fund Distributors from a suitable location?

In these types of cases, you need to choose the nearest city, suiting your convenience, where the venue is set.  If the person is based in non-metro cities, while putting in your request, you may mention the cities that are close by, in the order of your preference.

Q6. What if the NISM’s CPE Program for Mutual Fund Distributors date and venue do/do not suit me?

As a window of twelve months is available, you may wish to wait for another CPE Program to be announced within the time and at a suitable location. It is a regulatory requirement, it will be in your interest to comply with as early as possible. While NISM makes best endeavors to offer a convenient venue and suitable dates, it may not always be feasible to conduct frequent CPE Programs in a particular area unless there is demand for the same.

Q7. If I am a senior citizen. How can I obtain a NISM Mutual Fund Distributors Certificate for the first time?

If you are above 50 years of age as on May 31, 2010, you may obtain a NISM Mutual Fund Distributors Certificate by either:

  1. Clearing the ‘NISM – Series – V – A: Mutual Fund Advisor Certificate Examination’ (or)
  2. Fulfilling the requirement of  the NISM’s CPE Program for Mutual Fund Distributors

Mutual Fund Distributor

Q8. If I am working in the industry for a long time. Can I attend the Mutual Fund Distributors CPE Program under Grandfathered by experience category?

If you have work experience of 10 years or more as a distributor, agent or employee or engage in the sale and/or distribution of Mutual Funds product, as on May 31, 2010, you may get a fresh certificate for NISM’s CPE for Mutual Fund Distributors by either;

  1. Passing the ‘NISM – Series – V – A: Mutual Fund Distributors Certificate Examination’ successfully.
  2. Or completing the NISM’s CPE Program for Mutual Fund Distributors

Q9. What are the documents a candidate needs at the Venue?

    1. Duly Filled Registration Form
    2. PAN Card (Original + Photocopy)
    3. Two recent Passport-size Photographs
    4. Documents mentioned under Eligibility Criteria and Requirements for RTA-Corporate CPE(whichever applicable)

Q10. If I have lost my certificate. How can I appear for NISM CPE Program?

If you have a clear photocopy where the photo on the certificate is clear, you may get permission to appear for the CPE Program. If you do not have a clear photocopy, please apply with the original issuing authority for the issue of a duplicate certificate. In addition, please note that NISM may issue duplicate certificates only if the original certificate is issued by NISM. Once you receive the duplicate certificate, you can submit the documents by email.

Q11. When do I get my certificate?

After NISM verifies the authenticity of the documents submitted by the participants, your certificate will be in electronic format only, to the email id provided in the Registration form. You will receive the certificate in about 30 working days from the date of the CPE Program. There can be delays due to postal delays in NISM receiving the documents from the CPE Providers or due to any discrepancy in the documents submitted by you at the CPE venue.

Q12. How can I track the status of my certificate?

The status of your certificate is available by calling NISM Helpdesk at 8080806476 or mailing to cpe@nism.ac.in.

Q13. I have misplaced my CPE certificate. How do I apply for a duplicate certificate?

NISM emailed the certificate to the candidate’s registered email ID. The candidate is also provided an option to download the certificate by login to the NISM portal. The download option is made available under the ‘My Examination’ menu.

To make the best profits on your money and want to know the Best Performing Mutual Funds India. Don’t worry! Get in touch with the team of experts at Wealthbucket where our aim is to simplify compliances. Let us guide you to reap the best benefits  Debt Mutual fund, Large Cap Mutual fund or Multi-Cap Mutual fund, to achieve your objectives.

For more details regarding the various compliances that your company may need to meet. Also, visit our website Wealthbucket. In addition, to resolve your problem just give a ring at +91 9999379929. or shoot on our email at contact@wealthbucket.in.

[su_button url=”https://www.wealthbucket.in/mutual-fund-agent/” target=”blank” size=”6″]Become Mutual Fund Agent[/su_button]

Related Posts

Short Term Mutual Funds,

Best Equity Mutual Funds

best mutual fund to invest in 2019

By |2019-09-17T05:53:34+00:00June 18th, 2019|Mutual Fund Distributor|0 Comments

About the Author:

This article has been posted by Pulkit Jain - the founder of WealthBucket - To raise awareness about Mutual Funds Investments. WealthBucket has made investing in Mutual Funds an easy, quick and welcome process, in India. An interactive online platform providing Trustworthy and sincere services to all its clients.

Related Posts