Mutual Fund Distributor Exam

To distribute mutual funds in India, you must pass the NISM Series V-A exam and obtain an ARN number from AMFI. Here is everything you need to know to get started.

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Who needs this certification?

Any individual or entity that wants to sell, recommend or distribute mutual fund schemes in India must hold a valid NISM Series V-A certification. This is a regulatory requirement under SEBI and AMFI guidelines — there are no exceptions.

This includes independent financial advisors, bank relationship managers who sell MF products, sub-brokers, and anyone operating under a distributor ARN. Corporate entities must ensure that all key personnel who interact with investors hold the certification.

Once certified, you apply for an ARN (AMFI Registration Number) which is your official license to distribute mutual funds and earn trail commissions from AMCs.

Step-by-step path to becoming an MFD

Step 1 — Prepare

Study the AMFI workbook and practise with mock tests targeting NISM exam difficulty

Step 2 — Register for exam

Book your slot at a NISM-authorised test centre via the NISM website

Step 3 — Pass the exam

Score 50 or above out of 100 to earn your NISM Series V-A certificate

Step 4 — Apply for ARN

Submit your certificate, KYC documents and application to AMFI for your ARN number

Step 5 — Get EUIN

Register for an Employee Unique Identification Number if you work under a distributor

Step 6 — Empanel with AMCs

Approach AMCs or RTAs like CAMS and KFintech to start accepting investor transactions

How MFD commissions work

AMFI banned upfront commissions in 2018. All distributor income today comes from trail commission — a percentage of the AUM (Assets Under Management) you bring to an AMC, paid annually.

Trail rates typically range from 0.4% to 0.7% of AUM per year depending on the fund category and AMC. This means your income compounds as your AUM base grows — a key reason MFD is considered one of the best long-term distribution businesses in financial services.

AMCs also pay additional incentives for B-30 city acquisitions (investors from beyond the top 30 cities by AUM). If you serve Tier-2 and Tier-3 city investors, your effective commission can be meaningfully higher.

Pass the exam. Get your ARN. Start earning.

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