How to be a Mutual Fund Advisor?

How to be a Mutual Fund Advisor

Want to be a Mutual Fund Advisor? If you possess the quality of analyzing risk appetite, financial goals, and investment horizons, you can also pursue a career in mutual funds advising. The main role of mutual funds advisors is to fulfill selecting various kinds of portfolios, tracking variety schemes, and singling out the best mutual fund for their client.

Being a mutual fund advisor is also a lucrative business, as the advisors make money via commissions that partnering distributors or houses get from selling each mutual fund’s investments. It is also inevitable for an advisor to be aware of the latest changes on the market, and give resonating solutions to the client to cope up with any market situations. You have to fulfill all the criteria before coming into industry by attempting the NISM exam to make you eligible to appear in this industry.

Let’s know how you can be a mutual fund advisor in India in the following article:-

Roles & Duties

Before you become a mutual fund advisor, you need to first comprehend all the features and what rules and responsibilities this job demands from you. If you have an in-depth understanding of the fundamental elements, it will be easier for you to secure opposition in this industry. The core duties and responsibilities associated with the role are the following:-

Discerning Client’s Needs

Knowing the client’s needs and goals are the foremost quality of a mutual fund advisor. When you know the clients’ purposes, more you can advise him accordingly how to make an approach to us achieving the investment goals in the mutual fund industry.  Goals are particularly based on the ultimate accomplishments, like buying a new home, savings for education, or buying a car, or retirement, or wealth increment. The advisor can make a proper guideline aligned with the goals, to achieve particularly investment decisions.

Enlightening the Investor

Educating the clients to come up with proper investment decisions is a crucial role of the advisor. They have to break down each and every market constraint that the investor may face while making the investments. They can provide real time market information and their possible consequences, or the possible gains or losses a product carries in different variations of the market in this way, they can make the clients more informed and confident to make their decisions in the market.

Evaluating the Risk-Appetite

Evaluating the risk appetite is one of the most essential role that are the advisor has to perform will stop this is due to they have to give solutions to the client according to their risk appetite that is associated with their EMIs, children expenditure savings age another criteria. Investors with high risk may invest upon equity associated with higher returns within a considerable period of time but investors with low risk might adopt a lower risk schemes to achieve their respective goals.

Analyzing Various Investment Horizons

The Mutual Funds advisor sector is fully aware of the investment schemes that are tailored with their client’s needs. Amongst the different categories of mutual funds, the advisor has to take out the one distinct fund that can help the client to organize his financial goals. In doing this, the mutual funds advisors have to be updated about the latest market schemes, doing SWOT analysis, comparing their metrics of performance, and then concluding with the most effective one.

Diversification of Portfolio

Diversifying a portfolio helps the client to widen their investment options, and in that way they will be less affected by the market volatility conditions and thrive in different investments. That was to come up with the best solutions that can increase the portfolio and give best returns to the client by assessing, comparing and optimizing different Mutual Fund options.

Maintaining Financial Records

All the documents and identifications associated with the different investments of the client should be recorded by the advisor. In this way, they can always provide clients with the suitable decisions according to their personas. Despite this any form of misuse of the clients, ideas should be refrained from doing without the client’s approval. Additionally all this documents are essential when auditing by different regulatory bodies before any investment.


The benefits of being a mutual fund investor are the following:-

  1. The advisors earn profitable returns when they earn commissions by doing investment on their client’s behalf on the mutual funds.
  2. An advisor has the flexibility of working in their time, so it helps maintain the work-life balance to exercise different works.
  3. By making the client lucrative investments, you can build a part towards a long-term client and advisor relationship, which will help your career further in investment management grow.

How to Be an MF Advisor?

By following these steps, you can build your own career in mutual funds advisory. These are the following:-

  1. Applying to NISM Exam: – For becoming a mutual fund advisor, A individual have to register themselves for the NISM ( National Institute of Securities Market) VA exam for mutual fund distributors certification. Once the registration is made by paying 1500/- , candidates can download a study book that is available online and prepare for the NISM exam at their own pace.
  2. Certification: – After qualifying the exam successfully, you can get the certificate within 30 days’ time. The CPE also has three years. One can download the certificate after the test results are published.
  3. ARN Number: All qualifying candidates have to gain an ARN (AMFI Registration Number) to initiate the proceedings of being an advisor. They have to provide PAN details, NISM Distribution certificate number, Identity details, and other information into the application form for ARN. After that, candidates compulsorily have to go through the Know Your Distributor process.
  4. Being MF Advisor: – Finally, the details of all forms have to be submitted through CAMS-KRA (KYC Registration Agency) online or coming physically to their office. Once the ARN number is successfully assigned to the candidate, their card shall be delivered to the address within a few days.
  5. Registration with AMCs or Distributors: – Once all the above criteria are fulfilled and candidate become a verified Mutual Fund Advisor, they have to make the registrations with AMFI distributors to sell the funds. In this way, their commissions are determined with distributors or fund houses and AMCs themselves.


Being a mutual fund advisor is indeed a much coveted career if anyone has the crave of helping people make decisions of their funds. This novel profession makes a person helpful for others and creates a proven track for their investment path. By passing the NISM exam, the candidate is entitled to do this job and become a mutual funds seller in India.