Yashaswi Udyojak
Mutual Fund Advisor – An Attractive Profession

Mutual Fund Advisor – An Attractive Profession


There are so many options available to invest your money other than banks and the post offices. Mutual funds are one of them. But most investors are unaware or half aware of them. They do not go for mutual funds even if they offer good returns. If the investor is appropriately guided, with a detailed analysis of mutual funds, then it is not only profitable to the investor but also the consultation service provider. This is how mutual fund advisor can be a successful profession. Let us see how. 


There is hardly any urban, literate person to be found who has not heard about mutual funds. Despite that, if we consider the knowledge or rather ignorance of the younger generation, many do not know what exactly is a mutual fund. I do not doubt that many young people will turn to this profession if you work hard for two-three years to establish your business and look after your client’s interests. After that you will not just earn income from home but also will earn more profit as your clients will be doing better.    

There are so many misconceptions about the stock market. But it is the surest way to wealth and prosperity. With the help of experts who invest in the share market and stock market, mutual funds give suitable returns through the medium of a Trust. The fund does not participate in the profits or losses. But they have to be paid a fee for their expertise. 

The total market value of all the financial assets in a fund collected from the investors is called asset under management. Started in the 90s these funds have shown robust growth. In the last decade, this fund has grown from Rs. 4 lakh crores to Rs. 24 lakh crores. It is estimated to be doubled in the next five years. There is a great demand for human resources to offer consultation to the typical investor about the intricacies of mutual funds. Hence young people should choose this profession. 

To become an independent financial advisor, you need to clear your class 12th exam. But being a commerce degree holder is better. It is easier for commerce graduates to understand concepts like finance, accounts and balance sheets. Besides, you have to pass the exam held by the National Institute of Security Markets (NISM). Then you have to get a certificate from the Association of Mutual Funds in India (AMFI) (which is called ARN). After the fulfilment of these criteria, you need to register your name with mutual funds that have given lucrative returns in the past. 

After this initial preparation, you are all set to start your business with the help of your acquaintances. This job is not as cumbersome as that of an insurance agent. And the investor is more willing to invest if he is offered a fund with good returns and high standard fund management. This form of investment is very popular. It is good to tell them that the market is fluctuating and the returns are not as certain as that of fixed deposits. Otherwise, it may lead to disappointments. Certainly, the returns are not similar to that of the annual fixed deposits, but it is higher if the investment is for a period of a minimum of five years. It undoubtedly helps to overcome inflation and also the taxes are less. 

This form of investment is more convenient. A salaried person can invest a minimum amount (as low as Rs 500) per month. This option is called SIP. It is possible to make your dreams come true with this option. Any goal can be achieved with this option like home, child’s education, marriage, retirement planning etc. 

A watchdog agency called SEBI regulates this business. SEBI is a government organization. It monitors the advisors and fund management. SEBI tries to reduce the commission as protection of the investor is the main objective. In fact, SEBI is seeking recomending that the advisor should charge their fees directly to the investor rather than getting a commission. The common man is yet to be familiar with the concept of paying a fee for any consultation other than that of a doctor or a lawyer. Moreover, Indians are great fans of freebies (with some honourable exceptions). Considering this mindset,  still, there is a long way to change this attitude. 

In order to successfully run the business, you have to qualify yourself consistently. It is very convenient to obtain a CFP (certified financial planner) certificate. It is possible to get this certificate after studying for 2-3 years. CFP increases your reputation with the investors, and your advice is taken more seriously. FPSB or Financial Planning Services Board issues these certificates. 

After settling in the business, many affiliated businesses can be started. The number of middle-class professionals who travel the world for jobs or leisure is growing. For them, foreign exchange services can be opened. You can obtain a license from RBI for that or can work as a sub-broker with a foreign exchange agent till you get the license. You can earn 25 paisa commission per dollar. 

Similarly, term insurance is becoming popular nowadays. Everybody needs a Mediclaim policy! This can also be an excellent affiliated business. 

If you have patience in the initial years, definitely becoming a financial advisor is a key to future success! 

Bhushan Mahajan 9850566310




It is necessary to study all the investment options in the market while working as an investment advisor. One has to minutely think about the financial status and track record of mutual funds and shares of listed companies. Close attention needs to be paid to the possible risks. Financial advice needs to be given after considering all these factors, along with the needs and attitude of the investor. 

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