If you are a recent college graduate, a housewife, a retired person looking to re-enter the workforce, or anyone else who is looking for a successful business opportunity, then this blog is for you! With a business, you can be your own boss, have an unlimited income potential, work according to your own convenience, and make the most of your skills! Starting a mutual fund distribution business allows you to not only earn well but also serve society and make a difference.
In this blog, we will look at the following topics -
- What is AMFI’s campaign - MFD Karein Shuru
- Why become a mutual fund distributor
- How to become a mutual fund distributor
- Why NJ Wealth
What is AMFI’s campaign - MFD Karein Shuru?
To raise awareness on the issue of the low number of mutual fund distributors and the potential of the mutual fund distribution business, the Association of Mutual Funds in India started a campaign called “MFD Karein Shuru”. Mutual funds have emerged as an attractive investment vehicle in the past 2 decades, making it a beloved instrument among investors. The simplicity and affordability of the product have made it accessible to retail investors. The mutual fund industry has witnessed exponential growth in the last 2 decades, growing from Rs 8.90 lakh crore as on 30th November 2013 to Rs 49.05 lakh crore as on 30th November 2023 (AMFI, 2023).
Why become MFD ( Mutual Fund Distributor)?
- Increasing demand- The demand for mutual funds is on the rise. The simplicity and accessibility of the product have made it a beloved investment avenue in the investor basket. The low entry barrier has allowed retail investors to park their investments with convenience. With an increase in the number of investors, the live SIPs in mutual funds are also increasing. This causes a need for someone to service this increasing number of investors.
- Low penetration- The population of India is 142 crore (Macrotrends, 2023), and the number of mutual fund distributors is just 1.46 lakh(AMFI, Oct 2023), meaning only 1 distributor for every 9700 people in India. This displays the potential of the mutual fund distribution business in India.
- High potential for expansion- The AUM to GDP ratio is just 17% as compared to the world average of 75% in 2021 (AMFI & World Bank, 2021). The mutual fund industry has a huge growth potential, which in turn is a bright opportunity for any individual aspiring to become a mutual fund distributor.
- Freedom- By becoming an MFD (mutual fund distributor), you don’t have to worry about reporting to someone or about achieving targets. You can work according to your own rules and at your convenience. Distributors can grow their business based on their calibre and passion.
- Build a legacy- With a mutual fund distribution business, you can create a legacy for your kids. Once they start their careers as mutual fund distributors, they can absorb your clients and bring in new ones, allowing them to have the background to carry on the successful legacy that you’ve built.
- Mutual fund distribution is a wholesome business that allows business owners to make a change in the lives of investors. Mutual fund distributors have a golden opportunity to help investors handhold them to build wealth and see their financial needs being fulfilled.
4 Steps to Become a Mutual Fund Distributor
To become a mutual fund distributor, you just need to follow some simple steps:
- Clear NISM V-A exam - Anyone above the age of 18 years who clears the NISM V-A examination can become a mutual fund distributor. With this examination, you can learn about the ins and outs of the mutual fund industry, allowing you to understand how to work in real-world situations.
- Obtain ARN and EUIN from AMFI- After clearing the NISM V-A, one must obtain an ARN (Application Reference Number) and an EUIN (Employee Unique Identification Number) to become an MFD.
- Empanel with a distribution platform or with AMC- Once you obtain an ARN number and EUIN number, you must empanel with a distribution platform like NJ Wealth, which can provide you with complete support in a business where you can just focus on sales. Another way to go is by empanelling with AMCs and operating independently.
- Start your distribution journey- Once you have done all this, you can start making a difference in investors’ lives by guiding them in making the right mutual fund investment decisions.
Why NJ Wealth?
NJ Wealth is one of the largest mutual fund distributors in India, with an AUM of more than Rs 1.719 crore, 28.75+ lakh happy investors, and over 33,000 mutual fund distributors as on 30 November 2023. It is spread across 180+ locations in 23 different states of India.
NJ Wealth is a financial products distribution platform that serves as a crucial link between fund houses, distributors, and investors. Functioning as a B2B2C platform, NJ Wealth has established partnerships with various asset management companies, enabling it to offer a unified and easily accessible window for mutual funds to both distributors and investors right from the outset.
The NJ Wealth platform is designed to empower its mutual fund distributors, whom we call our NJ Wealth Partners, allowing them to manage their entire business seamlessly. Partners can concentrate on core activities, such as investor acquisition and servicing, without the need to handle multiple asset management companies, service providers, technology infrastructure, customer care, and operations. Through comprehensive training, research, marketing, and sales support, NJ Wealth ensures that its partners are equipped with the necessary tools and resources to conduct and scale their business efficiently.
The digital nature of the NJ wealth platform empowers distributors to operate their business from any location, hence eliminating geographical constraints. NJ Wealth believes that its platform not only bridges the gap in the financial distribution process but also contributes to success stories for both partners and investors alike.
Toh fir MFD karein shuru? - NJ Wealth ke saath!
