Role And Responsibilities of a Mutual Fund Agent

We generally seek financial advice from those friends/relatives/colleagues/knowns.

It isn’t clear why we seek out advice from our close and dear ones. They might have been successful on the investment front. They might have made smart investments. We might feel that they have more experience, knowledge, wisdom and investment insight than we do. We may feel they are wiser because they are more successful than we.

There could be many reasons. Even though money and investments are considered personal matters, We should therefore only talk about such matters with trusted friends and family.

However, most investors don’t understand the many financial products available. There are only a few investment options on the market that we are familiar with. It is generally what our family and friends have invested in. Fixed deposits, gold and insurance policies are all examples.

We don’t have enough time to understand and study the market, so our financial literacy is limited. Its ups, and downs. Its pricing, NAV and tools, as well as ratios and other things.

As an investment option, growth of mutual funds

AMFI data shows that the Average Assets Under Management (AAUM), of Indian Mutual Fund Industry in July 2019 was Rs. 25,81,026 crore.

Assets Under Management (AUM), as of July 31, 2019, was Rs. 24,53,626 crore. It has been a long journey from Rs. 7.22 trillion as of 31 July 2009. This is a 3 1/2-fold increase in just 10 years.

The industry’s AUM has risen from Rs. As of 31 July 2014, the industry’s AUM was Rs. 10.06 trillion. 24.54 Trillion as of 31 July 2019, approximately 2 1/2 times growth over 5 years.

The milestone of Rs. 10 Lakh Crore in May 2014, the first time that it had crossed this milestone. And had already crossed Rs. 20 Lakh Crores by August 2017. Within three years.

The number of accounts, or folios, as at July 31, 2019, was 8.48 million. The number of folios in Equity, Hybrid, and Debt Oriented Schemes was 7.62 crores.

This revolution has been led by mutual fund agents. They generate interest and encourage investment in mutual funds schemes. They have made it known to the public that mutual funds can be a great investment option.

About Mutual Fund Agent

NISM defines a Mutual Fund Agent as a person or business that promotes mutual funds. The agent helps investors to buy and sell units. An upfront or trail commission is paid to the agent for any investments made using his advice.

People usually choose a scheme based on its past performance. However, past performance may not be sustainable. The evaluation should consider a range of factors. You should consider the scheme objective, record of the fund house, achievements of the fund manager, market conditions, and the risks the fund is taking.

This evaluation requires time, effort, understanding the market, timing it, and knowledge of the analytical instruments. It is important to understand all legal nuances, terms, and legal complexities. You should also be able analyze and compare many options. A mutual fund agent, on the other hand, is trained and qualified for this job.

Individual investors often overlook another aspect when selecting mutual fund investments. This is more important than choosing the most popular scheme. This factor is also important: our financial situation. The current financial situation of an investor must be considered when selecting the best or most suitable scheme. This is the best information that an investor (or herself) can get.

A good agent with years of experience dealing with clients would be able ask the right questions to put things into perspective.

Once the portfolio has been constructed, all investments have been made. These investments should be monitored regularly. This is a continuous job. These schemes can also be reviewed by an agent.

The Role and Responsibilities of Mutual Fund Agents

Giving investment advice is about addressing the priorities and concerns of investors. An investment advisor who has the right skills, qualifications, experience, and knowledge is better equipped to give sound advice. An investor should seek out a professional mutual fund agent who has the relevant experience to understand your investment goals and risk appetite. As such, they can offer investment advice. With the required reasoning.

1. Educating the investor

In detail, understand the goals of the investor for that particular investment. Then, create a model that is both practical and suitable for your investment plan. This is well-diversified to suit the investment capacity.

It is crucial that each plan is explained to the investor. An agent should explain to an investor the advantages of diversifying his/her portfolio in different asset classes. First, the agent must be able understand the nuances that affect the investor’s mindset.

This requires a lot of hands-on experience, knowledge and qualifications.

2. Analyzing Risk Appetite

Our risk appetite is one of the key factors that will influence our investment strategy selection. This is the amount of risk we are willing to take.

However, the most important factor is age. The younger people are considered to be more able to take on risk. However, there are other factors that can affect it. The dependents of the family, for example.

Before recommending an investment strategy, a good Mutual Fund Agent will take into account your long-term and short-term financial goals, financial tenure, age, family situation, expenses, and current financial responsibilities. He/she will ask you relevant questions. Be honest.

3. Evaluation of Investment Options

Every financial instrument in every asset class has its own characteristics. Fixed income instruments such as fixed deposits, Debt Mutual Funds and Bonds all have specific characteristics. They provide security. They do not beat inflation. They are therefore not able to achieve long-term investment goals because of their low returns. Investing in equity mutual funds can generate higher long-term returns. They beat inflation. They can be volatile when it comes to investing in the short-term. They are less volatile than fixed income instruments. Similar to fixed income instruments, investments in other asset classes like international equity, real estate, or gold come with their own risk and return characteristics.

After the profile of the investor is complete with clear goals, financial circumstances, and risk appetite, the agent will conduct a detailed analysis of market conditions. The agent will then recommend equities, money market instruments or debt funds as investments.

To provide relevant advice, good mutual fund agents must keep up to date with financial trends and financial news.

4. Designing an Investment Strategy That is Right for You

It is possible to limit one’s options for investment by seeking advice from non-professional sources. This could be detrimental to the idea of diversification. This would most likely not be in line with one’s investment goals or risk appetite.

An agent’s task is to create a financial plan that the client is comfortable with based on their financial goals. This requires exploring various investment options. This means that the agent must first evaluate whether each investment option can be used to help or hinder the client in reaching their financial goals.

The mutual fund agent analyzes the investment options and plans an investment strategy.

Combining different investment options in order to diversify your portfolio is called “mixing and matching” to minimize risk and maximize return. You could invest in both equities and bonds, for example.

This portfolio needed frequent reevaluation. Because the market conditions can change. Client’s goals, risk-taking abilities, and other factors may also change. Agents must monitor the client’s portfolio closely and suggest modifications if necessary.

5. Investors Update Their Portfolio

Investors should keep track of the market’s current conditions, changes, and new products. This information is crucial in making decisions about mutual fund investments, such as buying, redeeming or switching. It takes a lot of research to find the best investment options in different markets and sectors. The mutual fund agent plays an important role in optimizing your portfolio and minimizing risks.

6. Record-keeping

A mutual fund agent must manage confidential financial information of clients and keep it safe. This is an important part of their work profile. According to SEBI regulations, the mutual fund agent must keep records of all services provided, including invoices, details about services offered, and any transactions. Asset Management Companies and the Fund House can use this information to help them evaluate their data in order to create new plans based on customer reviews and trends. These documents are required during an audit of the firm by regulatory agencies.


Mutual Fund Products are usually “sold” through an intermediary. The Mutual Fund Agent will explain all aspects of the products to investors in order for them to make informed decisions.

Investors don’t always have the knowledge necessary to make independent investment decisions. The mutual fund agent plays a vital role in this situation. He/she also helps potential clients to understand how mutual funds fit into their overall financial plan.

The growth of mutual funds industry is a clear indication of the contribution made by mutual fund agents to spreading investment awareness. Agents are leading the revolution in Indian investment inclinations. Increased penetration of mutual funds investments in the non-corporate investor sector. Expertly marketing the product, and keeping the clients informed during market downturns or periods of underperformance.

Mutual Fund Agents in India have assisted investors to shift from guaranteed returns products to market-linked product.

The industry’s sales force is the community.