New Delhi. The scope of mutual funds in India is increasing rapidly and with it the opportunities to become a mutual fund agent or distributor are also increasing. This work provides time freedom, starts at low cost and the income keeps increasing every month because it is completely based on recurring income. If you want to make a career in this field, then the entire process and earning model is explained here in easy language.
To start this work, some basic documents and a small examination are required. You must be at least 18 years of age, have PAN and Aadhar card and must have passed 12th. After this you have to appear in NISM exam, which is called Mutual Fund Distributor Exam. This exam is conducted for around Rs 1500, there are 100 questions and it is considered passed if you get 50% marks. Its certificate is valid for 3 years.
What next?
After this, you have to register with AMFI and get an ARN number, the fee for which is around Rs 3000. Along with this, biometric verification of KYD i.e. “Know Your Distributor” is also necessary. When all this is completed, you can register with different fund houses and sell their schemes.
how to earn money
Mutual fund agents earn from trail commission. This means that as long as the customer’s money remains invested in the fund, you keep getting commission every month or every quarter. This commission generally ranges from 0.1 percent to 2 percent, depending on the type of fund and the location of the customer. In small cities, the commission is slightly higher for adding new investors.
How much can you earn: at a glance
Below is a simple table which gives an idea of the annual earnings of new, intermediate and experienced agents.
| Experience | Estimated AUM (Total Investment of Customers) | annual earnings |
|---|---|---|
| 1–2 years | 25–30 lakhs | Rs 18000–22000 |
| 3–5 years | 1–2 crores | Rs 75000–150000 |
| 10+ years | 20 crores or more | Rs 15 lakh or more |
The biggest reason for increasing earnings is that AUM increases every month through SIP and market returns also keep adding with time. The longer the customer stays engaged, the more stable and growing revenue you get.
What is the difference between distributor and RIA
The mutual fund distributor does not charge any fees from the customer. He gets commission directly from the fund house. Whereas RIA i.e. Registered Investment Advisor charges advisory fees from the customer and can directly advise the plan, which has less expenses. RIA has more legal responsibilities, whereas the distributor only has to avoid mis-selling.
New rules, growing market and need for technology
From February 2026, SEBI will give an additional incentive of 1 percent on adding new investors in small cities and new women investors across India, the upper limit of which has been kept at Rs 2000. This step is a big opportunity for the distributor. On the other hand, digital platforms and direct plans are now becoming a bigger challenge, so agents who want to survive will have to focus on online onboarding, portfolio tracking, and strong customer service.
