Who is a Mutual Fund Distributor? Roles, Responsibilities, and Benefits

Introduction A mutual fund distributor plays a crucial role in the financial ecosystem by helping investors navigate the complexities of mutual fund investments. They act as intermediaries between asset management companies (AMCs) and investors, ensuring that individuals make informed investment decisions. This article explores who a mutual fund distributor is, their key responsibilities, and the benefits associated with this profession. Who is a Mutual Fund Distributor? A mutual fund distributor is a financial professional or entity that assists clients in purchasing and managing mutual fund investments. They are not fund managers but act as sales agents who guide investors toward suitable mutual fund schemes based on their financial goals, risk appetite, and investment horizon. To operate legally, a mutual fund distributor in India must obtain proper certification and registration from regulatory authorities like the Association of Mutual Funds in India (AMFI) and the Securiti...