GreenFunds Education, not financial advice India
Getting funds to investors · 5 min

Where a distributor fits

The role, and the ARN

You are the distributor this exam is preparing. This lesson places your role in the chain: the helpful guide between the investor and the fund, licensed and accountable.

This lesson teaches a concept for the NISM Series V-A exam. It is education, not financial advice.

  1. 1

    A distributor helps an investor choose and complete the paperwork. They do not manage the money.

  2. 2

    To distribute funds you need an ARN from AMFI, earned after clearing this exam.

  3. 3

    A distributor empanels with the AMCs whose funds they want to sell.

  4. 4

    The job is guidance and service, always inside the code of conduct.

Rupee example

A first-time investor, unsure where to begin, often values a distributor who explains the options and handles the forms.

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Practice

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Real exam format. Answer by voice, tap, or press 1 to 4. No negative marking, so always attempt.

Answer by voice
Tap the mic and say A, B, C or D. Typing is optional.

To sell mutual funds, a distributor must hold:

An ARN, earned after clearing the NISM exam, is the licence to distribute.
Net worth rules apply to the AMC; adviser registration is a different role.

A distributor's role is to:

Guidance and service. Managing money and regulation belong to others.
The AMC manages; SEBI regulates.

To sell a particular AMC's funds, a distributor must:

Empanelment is the tie-up that lets a distributor sell a given AMC's schemes.
The others are not requirements.

The ARN is earned after:

Clear the NISM Series V-A exam, then complete AMFI's registration steps.
There is no large deposit or long-service requirement.

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NISM V-A syllabus

1What a mutual fund really is2How a fund is built3Who watches over it4The offer document, decoded5Getting funds to investors6Selling the right way8NAV, loads and the daily price9Types of schemes, and picking one10Return, risk and performance11How gains are taxed12Serving the investor See the full roadmap →

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