If you’re exploring mutual funds, perhaps considering a Systematic Investment Plan (SIP) or reviewing your options – here’s some information on the industry and the role of registered distributors. As of January 31, 2026, India’s mutual fund Assets Under Management (AUM) stood at ₹81.01 trillion (₹81,01,306 crore), with Average AUM for the month at ₹82.01 trillion. Investor folios exceed 26.63 crore, January SIP inflows were ₹31,002 crore, and contributing SIP accounts are over 9.92 crore. Many individuals participate in systematic investing.
Investing in mutual funds involves questions about scheme selection, market fluctuations, taxation, rebalancing, and choices like Regular vs Direct plans. An AMFI-registered Mutual Fund Distributor (MFD) can provide information and assistance, subject to regulatory requirements.
As an AMFI-registered distributor holding a valid ARN and NISM qualification, activities follow SEBI Mutual Funds Regulations, the AMFI Code of Conduct, and the AMFI Master Circular for Mutual Fund Distributors (January 2026), which emphasize suitability assessment, transparency, and investor protection.
Who Is an AMFI-Registered Mutual Fund Distributor?
AMFI-registered MFDs are intermediaries empanelled with multiple Asset Management Companies (AMCs), enabling access to various mutual fund schemes. India has over 1.8 lakh individual MFDs (plus corporate channels).
Key requirements include:
- Passing the NISM Series V-A Mutual Fund Distributors Certification Exam.
- Renewing certification every 3 years.
- Maintaining an Employee Unique Identification Number (EUIN) for traceability of recommendations.
- Adhering to the AMFI Code of Conduct and SEBI regulations.
- Complying with the AMFI Master Circular (January 2026), including suitability and disclosure rules.
Recommendations include EUIN for accountability.
Areas Where an MFD May Provide Assistance
1. Onboarding and KYC Process
Initial steps involve e-KYC, verification, and understanding Regular vs Direct plans. An MFD may assist with the process and explain that both offer the same schemes, with Regular plans reflecting distributor services in the Total Expense Ratio (TER).
2. Considering Portfolio Options
Multiple scheme categories exist (equity, debt, hybrid, multi-asset, etc.). An MFD may discuss risk profiling (financial capacity and tolerance) and provide information on allocations based on your stated objectives and time horizons.
3. Information During Market Changes
Market variations occur. An MFD may offer periodic reviews, rebalancing information, and context on historical patterns to support decision-making.
4. Withdrawal-Related Information
Withdrawals involve tax and structuring aspects. An MFD may provide details on Systematic Withdrawal Plans (SWP), current LTCG/STCG rules, and nomination updates.
Regular vs Direct Plans – Basic Differences
Direct plans have lower TER (no distributor commission). Regular plans include distributor services via slightly higher TER.
- Direct plans: Lower expenses; require self-management.
- Regular plans: Slightly higher TER; distributor assistance available.
The choice depends on individual experience, time availability, and preferences. Trail commissions align incentives with long-term holding. SEBI/AMFI guidelines (including 2026 updates) mandate transparency on expenses and suitability.
Aspects Some Investors Find Helpful
- Access to a single point of contact for queries.
- Assistance with systematic approaches.
- Information on tax-related options (e.g., ELSS).
- Access to schemes from multiple AMCs.
- Support for resolving operational issues.
All investments carry market risks; results vary by individual circumstances.
Steps to Consider
- Verify registration at amfiindia.com.
- Provide details (objectives, income, risk comfort) for suitability discussion.
- Review any information provided carefully.
- Consider starting with small amounts if suitable.
At mfd.co.in, assistance includes KYC support, objective discussions, and ongoing information in line with regulations.
To discuss your mutual fund options, visit mfd.co.in/signup for initial steps. Services are provided via Regular plans (standard TER applies; no separate advisory fee).
Disclaimer
Mutual fund investments are subject to market risks, read all scheme-related documents carefully. Past performance is not indicative of future results. Returns are not guaranteed and can be positive or negative. This article is for educational purposes only and does not constitute personalized investment advice, recommendation, or solicitation. Investment decisions should be based on your individual financial situation, goals, and risk tolerance after proper assessment. Tax laws may change; consult a qualified professional. For personalized discussion, contact an AMFI-registered distributor or SEBI-registered advisor.
Regulatory resources: SEBI (sebi.gov.in), AMFI (amfiindia.com).
About the Author
Amit Verma – AMFI-Registered Mutual Fund Distributor (ARN-349400)
I may receive commissions on investments in Regular plans (paid from the scheme’s Total Expense Ratio, not charged separately to you). This affects net returns and creates a potential conflict of interest – consider when choosing between Regular and Direct plans. Verify my ARN at www.amfiindia.com.
Note: Registered with AMFI as a Mutual Fund Distributor (not SEBI-registered Investment Advisor). Guidance is limited to mutual fund distribution activities.
For further discussion:
- Visit: mfd.co.in/signup
- Contact: +91-76510-32666
- Email: planwithmfd@gmail.com
- Website: mfd.co.in
