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Mutual Fund Agent

Mutual Fund Agent in India

With the capital market riding on the back of a recovering economy, mutual funds have emerged as an important financial intermediary for the investing public. Although assets of the 30-odd Indian funds have jumped skywards, investors need to understand how a mutual fund works and the increasingly diverse and complex investment options created by a large number of MFs. The agent or distributor assumes the role of a financial advisor and is the key channel for bringing mutual funds to a large number of investors all over the country.
To offer quality service to investors and bring the unorganised segment under its loop so that no mis-selling of products happens, the Securities & Exchange Board of India (SEBI) has mandated that henceforth Mutual Fund (MF) distributors and agents will need a certification from the National Institute of Securities Market (NISM) to sell policies. Certified agents will be better equipped to provide informed advice and suggestions to investors.
However, those who have obtained the AMFI (Association of Mutual Funds of India) certification before June 1, 2010, are exempted from going in for the NISM certification. Two good books I can recommend on the subject are The Indian Mutual Funds Handbook by Sundar Sankaran and The New Commonsense Guide to Mutual Funds by Paul Farrel — both published by Vision Books (www.visionbooksin dia.com). Despite soaring salaries, there is an acute shortage of fund managers at a higher level. Poaching from rivals is rampant. Adding to the crisis, many top-notch fund managers are moving to less stressful positions such as consultants or advisors that offer even fatter paychecks and a more leisurely lifestyle. As a result of this shortage, more and more equity salesmen with analyst background are getting into fund management. But do not be in a hurry to jump in. It takes a few years to groom a good stock-picker i.e. someone who knows how to invest and where to invest — at minimal risk.