How to Become a Mutual Fund Agent?

6 minute read
How to Become a Mutual Fund Agent

Known as the Wizard of Omaha, Warren Buffet once said, “The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.” This is an imperative aspect of a career in investment banking. A mutual fund is basically a company that combines financial resources, i.e. money from various investors in securities such as bonds, stocks as well as short-term debts. If you are fascinated by the world of investments and funds, you can explore diverse career prospects in a specialised field of Finance which is referred to as Mutual Fund Distribution. This blog will provide you with a complete guide on how to become a Mutual Fund Agent, how it is different from a Mutual Fund Advisor along with eligibility requirements and the commission structure you need to fulfil to pursue a career in this field.

Who is a Mutual Fund Agent?

An individual who facilitates the buying as well as selling of mutual funds through investors and is awarded commissions for bringing in investors for mutual fund schemes is known as a Mutual Fund Agent. The agent is responsible for keeping a track of the performance and functioning of the Mutual Fund industry along with collaborating with the fund research in a timely manner to identify the best options for investments and intermittent risks. They are also responsible for conducting finance and investment analysis and monitoring the important developments in the market, industry and the economy in general. This profession requires a high level of knowledge of mutual funds, stocks and markets. There are several training programs that equip students with the essential skills and insight into the process of how to become a Mutual Fund Agent. 

Difference between Mutual Fund Distributor and Mutual Fund Advisor

A Mutual Fund Distributor and a Mutual Fund Advisor are registered and regulated entities and have the key responsibility of helping in different investment decisions including the mutual fund scheme selection. Mutual Fund Distributors are centrally involved in Mutual Fund Products while Mutual Fund Advisors have more products and services to handle. The latter one also possesses a broader perspective of investors’ assets assessment, income, liabilities, expenses and the recommended products. A Mutual Fund Distributor is responsible for analysing the investor’s risk/situation profile and recommending products that suit the investor’s needs.

Eligibility Requirements

There are certain requirements that need to be fulfilled to understand how to become a Mutual Fund Agent. Here is a list of the basic requirements you need to keep in mind to discover this career field:

  • The candidate needs to be 18 years or above.
  • You should have completed your Senior Secondary education, i.e. 12th standard as well as 10th standard with at least 3 years of diploma in any field. 
  • A degree in Finance or Investment banking is generally preferred.

Required Skillset

To be a successful Mutual Fund Agent, one must possess the following abilities:

  • Knowledge of Financial Markets
  • Understanding of the various types of mutual fund schemes available in the market.
  • Analytical Skills (for analysing different investment options)
  • Assessing investors’ risk tolerance
  • Communication abilities (for interactions with clients and making them understand their investments )
  • Research Capabilities ( for conducting research on the various mutual funds with regards to their past performance, durations, holdings, concentration, asset qualities, the risk associated with a particular scheme and many others)
  • Providing clients with up-to-date recommendations based on market conditions.

While there are no specialised degree courses for those planning to become a Mutual Fund Agent, you can pursue a degree in Investment Banking, Stock Training or Finance to learn about this field. Here are the top courses you need to consider to learn about the essentials of mutual funds and investments:

MSc Corporate Finance and Investment BankingBurgundy School of Business
Master’s in Financial EconomicsCardiff University
Master of Applied FinanceUniversity of Western Australia
Bachelor’s in Finance, Investment and Risk
MSc in Banking, Finance and Risk Management
Glasgow Caledonian University
MSc FinanceUniversity of Kent
Master’s in International Banking and FinanceLondon Metropolitan University
Masters in Financial MarketsMykolas Romeris University
Master in Stock Market and Financial MarketsEAE Business School
MS FinanceLewis University

Mutual Fund Exam Syllabus

Mutual Fund Agent Commission Chart

Mutual Fund Agents with a thorough knowledge of debt markets and equity are always in demand in the finance sector. The industry offers various career opportunities in wide-ranging areas such as Marketing, Investments, Product Development, HR, Sales and Compliance across different management levels. A Mutual Fund Agent can also generate revenue sources for themselves through some specific Commission Structures. This way, they can opt for additional earnings by working independently. Here are the major two commission structures commonly practised by Mutual Fund Agents: 

  • Upfront Commission: This is sold to the agents on the successful first sale of plans and is a part of the total expenses. As a Mutual Fund Agent, you will be entitled to this commission after the completion of a fresh investment. 
  • Trail Commission: This is considered the principal mode of earning for Mutual Fund Agents. You are entitled to this commission till the time your client remains an investor in the mutual fund. It is calculated on the basis of the percentage of your asset under management. 

Mutual Fund Agent Career

Since the last decade, the Indian mutual fund industry has expanded rapidly. According to AMFI data, the total AUM (Assets Under Management) as of April 2020 is approximately Rs.24 lac crores, representing a two-fold increase in five years from Rs.11.86 lac crores in April 2015.

By 2030, the Indian mutual fund industry hopes to have an AUM of Rs. 100 lac crores and 10 crore investors. The high growth in mutual fund data demonstrates the breadth of opportunities in the mutual fund industry. Furthermore, with the number of financial agents/advisers/distributors in our country being insufficient to meet the needs of investors, there is a need for more new entrants into the space to cater to the growing client base.

In terms of monetary compensation, a career as a Mutual Fund Agent can be extremely rewarding. The commission earned grows in tandem with the growing client base and their increasing investments, providing advisors with limitless opportunities to increase their income. In addition, the mutual fund industry provides a wide range of career opportunities for individuals in sales, marketing, risk management, investment management, compliance, fund management, journalism, and other fields.

Mutual Fund Agent Salary

The salary of a mutual fund agent depends on years of experience. After a few years, mutual fund agents can earn from 50,000- 1 lakh per month. After acquiring the skills and knowledge, mutual fund agents can earn up to 2 lakhs in a month.


How much do mutual fund agents earn?

Mutual Fund Advisor salaries in India range from 0.9 Lakhs to 4.8 Lakhs per year, with an average annual salary of 2.3 Lakhs.

How much commission will I get as a mutual fund distributor?

A distributor can earn anywhere from 0.1 per cent to 2 per cent based on these various factors. However, a mutual fund distributor typically earns around 1% on equity scheme investments and 0.5 % on debt scheme investments.

Is it profitable to become a mutual fund distributor?

The mutual fund industry in India has grown tremendously, and the agents/distributors who work with such platforms are also well compensated. Mutual fund distributors make money by receiving commissions on customer investments.

Hopefully, this blog has directed you in the right direction regarding the question of how to become a Mutual Fund Agent. If you want to know more about the career prospects in Mutual Funds, get in touch with the experts at Leverage Edu to explore this specialised field as well as the diverse prospects it offers.

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