Latest news with #NISM
News18
3 days ago
- Business
- News18
Want To Start A Career In Mutual Funds? Here's How To Become An Agent
Last Updated: A mutual fund agent is a certified professional who helps individuals invest in mutual fund schemes. Mutual funds have become one of the most popular investment options in India, offering a mix of flexibility, professional management, and diversification. As more people turn to mutual funds for their financial goals, the demand for reliable mutual fund agents is growing. These agents play a vital role in bridging the gap between fund houses and investors, helping clients make informed decisions. Becoming a mutual fund agent is not only rewarding financially but also helps promote financial literacy and secure futures. Who is a Mutual Fund Agent? Mutual fund agents act as vital links between investors and mutual fund companies. To help expand a fund's investor base, these agents earn commissions from the fund houses for every successful investment they facilitate. In simple terms, a mutual fund agent—also called a Mutual Fund Distributor (MFD)—is a certified professional who assists individuals and businesses in buying and selling mutual fund schemes. Their key responsibility is to understand an investor's financial goals, risk appetite, and time horizon, and then match them with the most suitable mutual fund options. While MFDs are allowed to provide detailed information about various mutual funds, they are not permitted to offer personalised investment advice unless they are also registered as a Registered Investment Advisor (RIA) with SEBI. Their income typically comes from commissions paid by Asset Management Companies (AMCs), making it a performance-based role driven by trust and effective client service. Who Can Become a Mutual Fund Agent? Minimum Age: You must be at least 18 years old. Certification: You must successfully clear the NISM-Series V-A: Mutual Fund Distributors Certification Examination conducted by the National Institute of Securities Markets (NISM). Personal Finance Knowledge A solid understanding of personal financial planning helps you better assess your client's financial needs and recommend suitable mutual fund schemes accordingly. Mutual Fund Expertise You must be well-versed in the different types of mutual funds, their risk profiles, returns, and market dynamics. This expertise ensures you can guide clients accurately. Communication Skills The ability to simplify complex financial concepts and explain them clearly to clients is crucial. Good communication builds trust and confidence. Sales and Marketing Abilities Since the role involves client acquisition and retention, having strong sales and marketing skills can help you grow your network and succeed. Analytical Thinking Understanding market trends and aligning them with a client's investment goals requires strong analytical capabilities. Steps to Become a Mutual Fund Agent Meet the Eligibility Criteria You must be at least 18 years old and have completed Class 12 or equivalent. Enrol for the NISM Series V-A: Mutual Fund Distributors Certification Exam conducted by the National Institute of Securities Markets. The exam tests your knowledge of mutual funds, products, ethics, and regulatory frameworks. A passing score is required to proceed. Get AMFI Registration Once you pass the exam, apply for registration with the Association of Mutual Funds in India (AMFI) to obtain your AMFI Registration Number (ARN). Empanel with AMCs After receiving your ARN, you can approach various AMCs to get empanelled and start distributing their mutual fund products. Start Selling Mutual Funds top videos View all Use your network, digital tools, and financial platforms to reach out to clients and begin your practice. Whether you are a student, working professional, or retiree, if you meet the eligibility criteria and possess the right skills, becoming a mutual fund agent can be both a fulfilling and profitable career path. tags : Business business news Mutual fund Location : Delhi, India, India First Published: June 10, 2025, 09:00 IST News business Want To Start A Career In Mutual Funds? Here's How To Become An Agent
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Business Standard
13-05-2025
- Business
- Business Standard
Sebi extends deadline of AIF managers' certification requirement to July 31
Markets regulator Sebi on Tuesday extended the deadline to July 31 for the certification requirement for Alternative Investment Fund (AIF) managers. Under the rules, the key investment team of an AIF manager is required to have at least one member certified as specified by Sebi. From May 10, 2024, the required certification is the NISM Series-XIX-C: AIF managers certification examination. Earlier, Sebi allowed existing AIF schemes as of May 13, 2024, and schemes pending approval (as of May 10, 2024) until May 9, 2025, to obtain this certification. "Based on representation received from the AIF industry, and with the objective of providing ease of compliance to the AIF industry, it has been decided to extend the said timeline from May 9, 2025, to July 31, 2025, to obtain the requisite NISM certification," according to a Sebi circular. This extension is effective immediately, it added.
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Business Standard
02-05-2025
- Business
- Business Standard
IFSCA, NISM collaborate to advance capacity building in financial sector
The International Financial Services Centres Authority (IFSCA) and the National Institute of Securities Markets (NISM) on Friday inked a pact to advance capacity building in the financial sector. As part of the agreement, NISM will act as a training partner for IFSCA and the various intermediaries registered with IFSCA, the markets regulator Sebi said in a statement. Also, NISM, a public trust established by Sebi, will conduct relevant certification examinations, including certification examinations mandated under the IFSCA Regulations, for the intermediaries registered with IFSCA. These skill development, professional training and certification programmes will ensure that the highest professional standards are maintained in the IFSCA ecosystem. "With a proven track record of over a decade, NISM is uniquely positioned to support the needs arising out of the burgeoning growth being seen at IFSCA," the regulator said. This Memorandum of Understanding (MOU) will be mutually beneficial to both entities as IFSCA will be able to leverage NISM's capacity building and certification expertise and NISM will benefit from the learnings arising out of servicing an international financial platform. The MOU was signed in presence of Sebi chairman Tuhin Kanta Pandey and IFSCA chairman Kalyanaraman Rajaraman.
Hans India
02-05-2025
- Business
- Hans India
Sebi Chief rules out aptitude test for retailers in F&O trade
Mumbai: Markets regulator Sebi Chief Tuhin Kanta Pandey has ruled out the possibility of an aptitude test for retail traders wanting to participate in the Futures & Options (F&O) segment, saying it is impractical and prone to regulatory overreach. The Securities and Exchange Board of India (Sebi) had earlier introduced measures in November last year in a bid to curb excess speculation in derivatives. These regulatory steps came in the wake of a Sebi study that revealed a staggering 9 out of 10 retail investors lose money, while trading in F&O instruments. When asked about the industry's suggestion of introducing tests for retail investors before permitting them to trade in risky derivatives products, Pandey clarified the regulator's stance. 'Right now, we aren't really considering any of those things.' He explained the concerns of practicality and effectiveness behind such proposals. 'Number one, we have to also see, will it be a regulatory overreach? Will you be able to effectively do it?,' he told in an exclusive interview. Sebi, he clarified, already has certification mechanisms for specific market participants. 'I mean, we do have for specific players, those who are registered with the system, we do have this. Like for example, NISM certification is there for several. Like you are a registered advisor or an IA or RA.' But applying this to millions of retail traders would be a different challenge altogether.
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Business Standard
01-05-2025
- Business
- Business Standard
Sebi chief rejects aptitude test for retail traders in F&O segment
Markets regulator Sebi Chief Tuhin Kanta Pandey has ruled out the possibility of an aptitude test for retail traders wanting to participates in the Futures & Options (F&O) segment, saying it is impractical and prone to regulatory overreach. The Securities and Exchange Board of India (Sebi) had earlier introduced measures in November last year in a bid to curb excess speculation in derivatives. These regulatory steps came in the wake of a Sebi study that revealed a staggering 9 out of 10 retail investors lose money while trading in F&O instruments. When asked about the industry's suggestion of introducing tests for retail investors before permitting them to trade in risky derivative products, Pandey clarified the regulator's stance. "Right now, we aren't really considering any of those things." He explained the concerns of practicality and effectiveness behind such proposals. "Number one, we have to also see, will it be a regulatory overreach? Will you be able to effectively do it?, he told PTI in an exclusive interview. Sebi, he clarified, already has certification mechanisms for specific market participants. "I mean, we do have for specific players, those who are registered with the system, we do have this. Like for example, NISM certification is there for several. Like you are a registered advisor or an IA or RA." But applying this to millions of retail traders would be a different challenge altogether. "... Tomorrow, someone will say, if you want to do it for a mutual fund, then you will have to do an aptitude test. So, who will take it? How will it be taken? How will it be passed? So, we have to see the pragmatism of it also. I don't think that, you know, anything of that kind is on our horizon at the moment," he said. He stressed the importance of individual choice when it comes to managing personal finances, noting that people should have the autonomy to decide how to use their money. "We have to really give the choice of people's own money to themselves. We also very much discourage the leverage for trading," he said. Emphasising individual responsibility, Sebi chairman drew parallels with behavioral tendencies and human psychology when it comes to risk-taking. "...every time, you do the F&O training, you will have a papa saying like a statutory warning, cigarette smoking is injurious to health. People do again smoke cigarettes still. So, I think ... if it is an addiction and if you are mindful of risk very clearly, then it is a different thing," he said. He acknowledged that if trading becomes an addiction, it moves into the realm of a "de-addiction" issue, which needs to be seen from a different lens. "To some extent, I think we have to really see, we have to also respect individual choice while you give so much of it. Because people do make experiment many a time and then they learn from mistakes and then they become in fact very much better players also," he added. On the broader regulatory view, he reiterated that Sebi discourages leveraged trading due to its high-risk nature. "We also very much discourage the leverage for trading. I mean, trying to borrow money and interest in that type of fact in Indian jurisdiction, really leverage buyouts are not allowed. You don't have leverages for this. Even in the AIF industry, we don't allow leverage, the high-risk thing. So, there is normally a situation in that you can do as much. But you can't really control people's lives and resources." "In a democratic country, they have to have their own choice," he added.
