A mutual fund broker or distributor is an entity who is authorised to sell mutual funds. They function as intermediaries in the purchase process, charging a commission that usually ranges between 0.5-1% of the investment value.

Mutual fund brokers are licensed by the Association of Mutual Funds in India (AMFI). One can be identified by a unique ID or the ARN (AMFI Registered Number) that is affixed to mutual fund applications that you buy through a particular broker.
Mutual fund brokers offer multiple services, ranging from providing seamless assistance in the application process to efficient portfolio management and furnishing timely, consolidated reports of the same.
There are almost 1.2 lakh mutual fund distributors in India. Read on to know how an experienced mutual fund broker can help you choose the mutual fund crucial to your financial goals:

What is the role of a mutual fund broker?

When you begin investing in a mutual fund, the paperwork and documentation involved can seem daunting. Mutual fund brokers serve to guide you through the entire process by providing comprehensive information about the scheme, assisting with KYC (Know Your Customer) compliance and filling up the mutual fund application.

They can also help you during the filing of income tax returns and advance tax payments by sending you the capital gains report, including both short-term and long-term capital gains.

How will a mutual fund broker help you with investing?

Investors with limited experience or who have just begun to venture into the realm of mutual funds can undoubtedly benefit from the detailed guidance and expertise of mutual fund brokers. Well-acquainted with all the formalities of the entire process, they ease you into the paperwork and offer end-to-end investment services.

Mutual fund brokers always stay on top of the market trends with diligent monitoring of any change. By offering useful, timely insights into the best-performing fund for your investment needs and accordingly outlining your expectations, they can help to optimise your returns. Not only do they manage your funds efficiently but also balance out the risk in the portfolio with an appropriate asset allocation strategy.
Moreover, it must be noted that specific schemes can only be invested in via a broker. Therefore, if you wish to avail the benefits of these schemes, you may have to get in touch with one.

In conclusion

Should you only be testing the investment waters, it is advised that you prepare a thoroughly-evaluated investment plan that is critical to your wealth creation goals. You can follow it up by approaching and utilising the services of a mutual fund broker who can then further facilitate the investment process.

Explore our list of mutual funds here.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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