Mutual fund distribution is slowly evolving as a stable career choice, given the scope of the opportunity that the mutual fund industry presents and very low entry barriers for anyone to make it a profession. ARN or AMFI Registration Number is a mandatory requirement that AMFI (Association of Mutual Funds of India) requires for every mutual fund distributor. 

In this article, let us look at the role of ARN and AMFI in mutual fund distribution and how you can obtain the ARN without any hassles. 

AMFI (Association of Mutual Funds of India)

Association of Mutual Funds in India (AMFI) is a non-profit entity regulated by SEBI.  It is an industry association formed by all the AMCs (Asset Management Companies) in India that plays the key role of regulator for the mutual fund industry. AMFI also ensures investors' rights are protected and they receive the right information and the latest developments in the industry.

AMFI also ensures that business is conducted ethically and complete transparency is maintained in everyday operations, reporting, and communication to keep investors' trust and confidence. AMFI sets common standards required to be adhered to by all parties involved in the mutual fund industry. 

Here are the key duties and responsibilities of AMFI:

Industry Regulator & Facilitator: AMFI acts as a facilitator to ensure ease of doing business for all members, investors, and stakeholders. AMFI addresses the issues and challenges that all parties involved in the mutual fund industry face. 

AMFI liaisons with regulators SEBI/ Reserve Bank of India, Government, etc, on policy matters and issues pertaining mutual fund industry.

Setting Benchmarks & Standards: AMFI is instrumental in formulating best practices and standardised operational guidelines that all AMCs follow in every aspect of their business to ensure investors' best interests are protected. 

Investor Protection & Awareness: AMFi plays a pivotal role in creating awareness about mutual funds through mass media so that common people across the country learn about mutual funds and start investing towards a brighter financial future. 

AMFI launched its flagship ‘Mutual Funds Sahi Hai’ campaign, a nationwide investor awareness media outreach in various languages initiated by AMFI in 2017 under SEBI’s guidance, which is one of the key efforts of AMFI to spread awareness about mutual funds as a distinct asset class. 

Transparency & Disclosure: AMFI shares important information about mutual funds on its website, such as displaying daily NAVs of all MF schemes, performance of all MF Schemes, and other useful industry data.

Capacity Building: AMFI helps improve professional standards in mutual fund distribution through training initiatives, certifications, and continuing education.

Since the time it was established, AMFI has evolved as a highly respected representative body of the MF industry, owing to active involvement of its members and has strived towards introducing several best practices across various areas, such as disclosures, operations and risk management, valuation of securities, streamlining the customer service and investor protection and communication, to be uniformly followed by all its members in the best interest of the investors.

Role of ARN

ARN or AMFI Registration Number is a verified registration number allotted by AMFI to mutual fund distributors, agents, or intermediaries. It acts as a license and proof of eligibility and the required minimum standard of knowledge to distribute mutual funds. 

To obtain the ARN, mutual fund distributors are required to pass the NISM V-A Mutual Fund Distributors Certification Examination conducted by NISM (National Institute of Securities Markets). NISM, regulated by SEBI, runs various courses and educational initiatives to enhance the quality standards in securities markets.

The NISM V-A course covers the basics of mutual funds, types of mutual funds, their structure, regulatory framework, financial planning, and taxation aspects, etc., ensuring that MFDs are equipped with the required knowledge to distribute the right solutions to investors. 

The examination consists of 100 MCQs with 50% marks required for passing and no negative marking.

You need to register with NISM and register for the NISM V-A examination, select a suitable date and time, and clear the exam.

How AssetPlus Academy Helps You Clear NISM V-A Easily

If you’re aspiring to become an MFD, AssetPlus Academy offers a free, structured training program to help you prepare for the NISM V-A exam and complete your ARN registration seamlessly.

Training Highlights:

• 12-Day Comprehensive Online Training by certified trainers
  
  
• Live Classroom Workshops in major cities
  
  
• Recorded Sessions for self-paced learning
  
  
• 12 NISM V-A Modules covered with Mock & Practice Tests
  
  
• Expert Q&A Sessions and Mentoring
  
  
• NISM & ARN Registration Support
  
  
• Empanelment with AssetPlus - India’s fastest-growing assisted wealth platform
  
  
• Ongoing Business Support: marketing, operations, and client onboarding assistance
  
  

Once you receive the pass certificate, you can apply for ARN on the AMFI website by submitting the required KYC documents.

The ARN is issued once your application is approved. 

To Conclude,

AMFI and ARN form the backbone of the mutual fund distribution ecosystem in India.
AMFI ensures ethical practices, transparency, and investor protection, and ARN ensures that every distributor entering the industry meets a minimum knowledge benchmark and follows the procedures laid down by the regulator. 

With structured training and expert guidance, like that offered by AssetPlus Academy, you can clear the NISM V-A exam, obtain your ARN, and kickstart a rewarding career in mutual fund distribution quickly and effortlessly. Register for the upcoming training sessions here. 

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