The Association of Mutual Funds in India (AMFI) has unveiled a mutual fund (MF) distributor recruitment campaign, “Karein Shuru?” (Can we start?).
The comprehensive campaign includes commercial films to reinforce the need and attractiveness of MF distribution as a career option with long-term earning potential for individuals with entrepreneurial aspirations.
To begin their journey as a MF distributor, one needs to appear and clear the ‘NISM – Series V-A: Mutual Fund Distribution Exam, Obtain ARN & EUIN from AMFI and approach individual AMCs for empanelment.
The campaign targets women looking to re-enter the workforce, retired professionals, enterprising fresh graduates and individuals with entrepreneurial aspirations.
A Balasubramanian, Chairman, AMFI, said given the under-penetration, the campaign would help the MF industry to onboard more distributors and reach out to a larger investor base.
Limited reach of intermediaries
The MF industry has the potential to cross ₹100-lakh crore in AUM by 2030, but the reach of intermediaries is limited with only about 1.25 lakh MF distributors, he said.
“Becoming a MF distributor needs less than ₹5,000 as initial investment. Over time, a combination of legacy business, new flows and market appreciation could help distributors grow their earnings. Going by past experience, market appreciation alone would have grown their earnings by 16 times over the last 20 years,” he said.
Vishal Kapoor, Director, AMFI, who spearheaded the campaign, said the MF industry can serve over 10 crore unique individual investors by 2030 with the active involvement of a large number of informed and qualified distributors.
NS Venkatesh, Chief Executive, AMFI, said an in-house research revealed that increasingly individuals are aspiring to have good earnings and yet be their own boss while serving the society at large.
As an MF distributor, they can help their clients generate wealth over the long term and, in turn, be rewarded with an enriching career, he said.