In this article, you will get to know everything about Best Mutual Fund Distributor in India.
The mutual fund industry is booming in India. As per the latest AFMI report, the total asset under management of the mutual fund industry stood at Rs.40.05 trillion in FY 202-23.
The industry has grown 7% in this financial year and five folds in the past ten years. So, if you are looking for the Best Mutual Fund Distributor Network, you are at the right place.
In this article, we will discuss the top 10 MF Distributor Platforms in India, which you can choose to become a mutual fund distributor and participate in this booming industry.
List of Top 10 Mutual Fund Advisor Programs of 2023
Check out the list of Best Mutual Fund Distribution Network in India.
Before choosing the MF Distributorship Platform, let’s understand how mutual fund distributors work.
So, mutual fund distributors are individuals or business firms facilitating purchasing and selling of mutual fund units.
Mutual fund distributors bring investors to mutual fund houses and earn commissions based on the investors’ purchase of schemes.
As you can see in the above table, the Best Mutual Fund Agent Network includes NJ Mutual Fund Distributor, Bajaj Finserv MF Distributor, Groww Mutual Fund Distributor, and others.
We have picked these MF distributors based on the investment requirements, commission shared by the fund house, number of distributors, and other similar factors.
NJ India – Best Mutual Fund Distributor Network in India
NJ Mutual Funds has had a broad presence in the mutual fund industry since 1994. Neeraj Choksi & Mr. Jignesh Desai started this Best Mutual Fund Distributor Network in India, which is also a public organization.
The network of distributors of NJ Wealth is one of the farthest-reaching, with more than five thousand distributors.
NJ India offers mutual fund distributorship across all the cities in the country, so the place of your residence doesn’t impact if you are becoming a distributor of NJ Mutual Fund.
The investments you would require for buying the distributorship rights of NJ Mutual Funds include Rs.1 lakh as the distributorship fees and another Rs.40,000 to Rs.50,000 for infrastructure you would require for running the business.
NJ offers distributorship for this fee for two years, and then you have to renew the same.
NJ Mutual Fund distributors earn a commission of around 3% to 4% of the AUM they get for the brand.
The average profit margin that the distributors of NJ Mutual Funds generate is around 69%, which started within 3-4 months of starting the business.
NJ Distributors get support like RM support, back-office support, advisory support, business management support, and more.
Bajaj Finserv – Best MFD Platform in India
Bajaj Finserv is among the Top MF Distributor Platform for all the right reasons. This fund house was started by Jamnalal Bajaj back in 2007, with headquarters in Pune. At present, it has around 1000 distributors in the country.
The MF distributorship Bajaj Finserv offers is for two years, for which it charges a distributorship fee of Rs.1 lakh.
Apart from this fee, the investment in infrastructure varies as per the infrastructure requirements you want for your business.
The distributors of Bajaj Finserv get a share of three to four percent in the AUM that their clients invest with Bajaj Finserv.
The profit margin you can earn as a mutual fund distributor of Bajaj Finserv is around 50%, and the rolling starts within 3-4 months of operations.
As a Bajaj Finserv MF distributor, you must set up at least a 250-300 square feet office premise.
You need a research and advisory desk, telephones, an internet facility, and ACs are compulsory amenities. You must also have at least 2-3 employees in the office.
Talking about support and training offered to the distributors includes client interaction training, back office and RM support, mutual fund investment and advisory support, and marketing support.
Groww – Mutual Fund Distributor Network
Groww is a new-gen Mutual Fund Distributor Network in India. It is a tech-first mutual fund distributorship network where you can enroll as a company partner.
They started in 2016 and already have over a hundred franchisees under them. Groww offers lifetime distributorship for a fee of Zero.
You do not have to invest anything in infrastructure if you want to keep it entirely tech-based. So, the investment required initially is nil which can be a boon for first-time MF distributors.
Groww MF distributors earn around 20% to 30% of the total funds invested by their clients with Groww.
This, in turn, helps them generate a profit of around 24% after deducting certain miscellaneous expenses and fixed costs like salary and rent, if any.
Groww offers additional support to its distributors, which includes back office support, marketing support, client interaction training, service pricing, other training for equipping the distributors with the required knowledge of the products, and more.
Prudent – Best Mutual Fund Advisory Platform in India
Prudent has emerged as another Best Mutual Fund Advisory Platforms in India recently.
It has a presence in pan India regarding mutual fund distribution networks with more than a thousand distributors.
Prudent Mutual Fund Distributorship can be availed for two years for a fee of Rs.5,000, one of the industry’s minimal.
However, the infrastructure cost varies between Rs.20,000 to Rs.50,000, depending on your office premise setup.
Your office must have 150-200 square feet of area. Then it must have an internet facility, telephones, and CCTVs. The research desk is optional, as well as advisory services.
As a distributor of Prudent, you will receive a commission for your distributorship services which ranges between 2% and 3%.
Usually, this commission helps you earn a profit margin of around 55% in a month, provided you have a good clientele.
Prudent offers different training to its MF distributors, such as service training, product information training, and client interaction training.
Then there is back office support, RM support, advisory and investment support, and more.
Paytm Money – Top Mutual Fund Distributor Networks of 2023
Paytm Money has been known for disrupting the entire financial ecosystem with its new-age technology-based offering in finance.
Mutual fund distributorship is something they entered into in 2020 and already become one of the Top Mutual Fund Distributor Networks of 2023. In just two years and a few months, more than hundreds of distributors are in the Paytm Money network.
Paytm Money offers a plain and straightforward partner’s business model under which you can also sell mutual funds.
For this, there are no partner franchise fees, and the work can be done from anywhere, so you would also require no office premises. Mutual fund distributorship with Paytm Money can be started with little or no investment.
The revenue that your clients generate from purchasing mutual funds, you will get 30%-40% of the same.
Given this investment and payment set-up, it takes only around a month to generate positive revenue from the business.
Taking about the profit margin, Paytm Money MF distributors usually make around 43% from the entire process.
Paytm Money offers client interaction training, product training, and marketing support to the distributors of mutual funds under their radar.
ET Money – Top 10 Mutual Fund Advisor Programs in India
ET Money is the online platform for mutual fund investments and other investment vehicles provided by Time Group.
This Brand is one of the Top 10 Mutual Funds Advisor Programs in India because of the ease of investment it offers and, thus, one of the favorites of the MF distributors as well.
ET Money was started back in 2015, and at present, it has around 400 distributors under its network.
It offers a two-year-long distributorship arrangement for no distributorship fee, and you can renew the same every two years if you want to.
The only investment you need to make is into building the infrastructure for the office premise. However, you can also do it without setting up an office, as remote facilities exist.
The ET Money MF distributors earn 2% to 3% of the total AUM invested by the investors in their clientele, leaving them with a profit margin of around 57%.
The time distributors usually take to start generating a return on their investment is between two to three months.
ET Money offers one of the best support to the distributors, which includes multiple offers, RM support, client interaction training, back office support, investment and advisory support, and marketing support.
It also provides business management software to track all the earnings and client details.
Funds India – Top Mutual Fund Agents Network in India
In this List of Mutual Funds Agent Networks, we also have Funds India, which offers mutual fund distributorship for a very reasonable fee.
This mutual fund distributorship business was started in 2009 by CR Chandrasekar & Srikanth Meenakshi and has now grown to a network of more than 150 mutual fund distributors.
For a distributorship fee of Rs.5,000, Funds India offers a 2-year long distributorship agreement which is renewable after the completion of the tenure.
The infrastructure requirements you will have may cost you anything up to Rs.40,000 on average.
However, if you are going for entirely online services, then you may not have to invest anything in infrastructure too, which can save you this cost as well.
The earning potential as a distributor of Funds India ranges from 2% to 3%, which usually helps the distributor to generate a profit of around 57%. The returns start coming in within two to three months, usually if you have a good client base.
Funds India is one of the favorites of the distributors when it comes to supporting and training facilities. They offer client interaction training, service training, and also product information training.
Apart from this, training and support for back office, investment and advisory, marketing, and relationship managers are all provided by Funds India only.
Kuvera – Best MF Sub Distributorship Platform
Kuvera Mutual Fund Distributorship business was started just seven years back in 2016, and in just these few years, it has become a two hundred distributors’ network and thus a part of this MF Sub Distributorship Platform Comparison.
The company offers a two years distributorship for zero fees, which is the company’s UPS. Coming to the infrastructure requirements, the choice is yours whether you want to operate from an office premise or remotely.
If you choose to work from the office premises, then setting it up may cost you around another Rs.50,000, depending on the amenities you are offering in the office.
The commission that Kuvera offers is 2% to 3% of the total asset under management from the clients you provide to the company.
From this commission, the distributors under Kuvera’s network usually generate around 57% profit. It takes around two to three months to earn a profit, which is quite understandable.
Moreover, if you do not invest in infrastructure, you can also start generating returns earlier. This is because your investment itself will be negligible.
Kuvera also offers all kinds of support, from marketing support to relationship manager support to mutual fund advisory and everything else.
Geojit – Best Mutual Fund Agency in India
Geojit is regarded as one of the Best Mutual Funds Agency for its wide experience and presence in the market for years. Its presence can be traced back to 2000, and it has over 1500 distributors across the country.
While it doesn’t offer any mutual fund distributorship separately but is along with a sub-brokers or partners model.
When you opt for these business models to purchase the franchise rights of Geojit, you can also sell the mutual funds to your clients.
Under the sub-brokers model, you will earn around 50% to 60% of the total commission earned; under the partners model, it is about 20%.
This helps you generate around 38% and 31% profit margins under the two models. The franchise fee of Geojit is Rs.50,000, while the infrastructure costs around another Rs.40,000.
However, the sub-brokers and partners usually start making profits within two months of starting the franchise business.
For Geojit MF distributorship, you need to have an office with at least 100-300 square feet where you employ at least two employees.
Your research and advisory desk must always be functional, and other amenities like ACs, CCTVs, internet, and others must work fine.
Geojit offers all types of training, including service and product training to the distributors. Apart from these, there are advisory support, marketing support, RM and back office support, and others are also provided.
Motilal Oswal – Top Mutual Fund Agent Networks
Motilal Oswal is a brand in the financial industry and also one of the Top Mutual Fund Agent Networks in India. It has a network of over 3000 mutual fund distributors in the country.
Motilal Oswal is currently offering mutual fund distributorship for two years for a fee of Rs.75,000. Its infrastructure requirements can cost you another Rs.40,000 to Rs.50,000.
Motilal Oswal is one of the few companies offering 3-4% of AUM as a commission to the distributors.
You can churn out profits starting from the very third or fourth month into the business. The profit margin of Motilal Oswal MF Distributors is also higher than its peers.
The support services of Motilal Oswal are top notch without a doubt. It includes client interaction training, RM support, mutual fund investments and advisory support, back office support, and much more.
Best Mutual Fund Distributor in India – Conclusion
So, if you are looking for the Best Mutual Fund Distributor Network, you can go through the ten mentioned above and find out the one that will suit your purpose the best.
Choosing the right mutual fund distributorship is crucial for setting up and running a successful mf distribution business in India.
FAQs on Top Mutual Fund Distributors in India
Find out various FAQs on the Best Mutual Fund Distributorship Companies in India.
Which is the Best Company for Mutual Fund Distributor?
NJ Mutual Funds and Motilal Oswal can be regarded as the best mutual fund distributor companies as they have the required experience as well as offer the best commission in the industry.
Which Mutual Fund Advisor gives the highest commission?
NJ Mutual Fund and Motilal Oswal offer around 3%-4% of the AUM, which is the highest in the industry.
Who is the Best MFD in India?
If you go by the number of distributors under the network, NJ Mutual Funds is India’s Best MFD Platform.
How much do Mutual Fund Agents earn?
You can earn around 55% to 70% profit as a Mutual Fund agent in India.
Is it reasonable to become an MFD in Inda?
Becoming MFD in India can be one of the best ways to work as a professional in the mutual fund industry, where you can earn on your terms.
Which is the Best App for MF Distributors Network?
ET Money is considered one of the best apps for MF distributors’ networks.
How to Choose a Mutual Fund Agency?
You have to go through the background of the company, the commission it offers, the investment you need to make, and the ROI timing to pick the right company for MF distribution.
How to Become a Successful MF Distributor?
It would be best if you were updated about the market to advise the proper funds to your clients. You can quickly grow as an MF distributor if your clients are happy.
What is the cost of becoming a Mutual Fund Advisor?
The cost depends on the company you pick for joining as MF Distributor. It can be nil if you choose a company with no fees or infrastructure requirements, or it can go up to around Rs.1 lakh to Rs.2 lakhs at a max.
What are the Monthly Expenses required to act as MF Advisor?
The monthly expense also depends on the number of employees you keep in your office and the amenities you provide.