Mutual Fund Advisors

A good mutual fund advisor should match the investor's needs with the features of various schemes and recommend a portfolio accordingly.
Mutual Fund Advisors
3 min

Investors often seek guidance to navigate the complexities of mutual funds. This is where Mutual Fund Advisors play a crucial role. Mutual funds, as investment vehicles, pool money from various investors to invest in a diversified portfolio of stocks, bonds, or other securities. Investors turn to Mutual Fund Advisors who act as financial guides to make their investments better and more streamlined, these advisors offer insights and strategies tailored to individual financial goals.

Who are Mutual Fund Advisors?

A mutual fund advisor is a professional individual or organisation that provides financial advice to investors on mutual funds. They are certified professionals who have the expertise to analyse various mutual fund schemes and suggest funds to investors for investment. Mutual fund advisors take into account various parameters such as investors’ investment horizon, risk appetite, and financial goals to curate a list of mutual funds for an investor that they can create a portfolio from. A mutual fund advisor is required to have a valid certification from the National Institute of Securities Market (NISM) to provide their services to investors. The Association of Mutual Funds in India (AMFI) looks after the proper disbursal of these certifications in a transparent manner.

Roles of Mutual Fund Advisors

The primary role of a mutual fund advisor is to provide unbiased and accurate information regarding different schemes. They help investors build a portfolio of mutual fund schemes that are in line with their financial objectives. This requires the mutual fund advisor to track a variety of mutual fund schemes with various investment goals. They should also be aware of significant financial market events that could have an influence. The role of a mutual fund investment advisor encompasses the following:

  1. Understanding investor needs: It is critical that mutual fund advisors try to comprehend the objectives of their clients as well as the timeline for achieving them. Their recommendations will be based on the goals the client has. These may include paying for higher education costs, building wealth in the long run, or saving for retirement.
  2. Educating clients: One of the many responsibilities of a mutual funds advisor is to inform their customers about the available options, especially those that are best suited to their objectives. Advisors may occasionally need to inform clients of any potential investing limitations.
  3. Evaluating investor’s risk tolerance: Investors’ risk tolerance should be assessed by their mutual fund advisors because some investors may not be aware of it.
  4. Analysing different investment options: Mutual fund agent assesses investment choices and offers tailored recommendations, leveraging their expertise in analysing mutual fund performance to match clients’ objectives.
  5. Devising the right investment strategy: Mutual fund advisors suggest the right investment strategy based on the risk appetite of the investor. For instance, equity funds are riskier than debt funds, and not every investor will prefer it. The advisor considers the long-term and short-term financial goals, investment tenure, age, expenses, family status, and current financial responsibilities before devising an investment strategy.
  6. Helping investors diversify their portfolio: Mutual fund advisors tend to select funds to make a diversified portfolio. Portfolio diversification is essential when it comes to minimising risk and charting their goals.
  7. Record-keeping: Mutual fund advisors keep track of the investments made by their clients and provide regular updates on the performance of the mutual fund schemes.

What should you look for in a fund advisor?

While a fund advisor assists in selecting the appropriate fund and constructing a suitable portfolio, a fund manager assumes the responsibility for making investment decisions specific to a particular fund.

  • Credentials, Experience, and Compensation: To qualify as a mutual fund investment advisor, one must obtain certification from the NISM (National Institute of Securities Markets). Additionally, while some advisors offer complimentary services, reputable ones typically charge either commissions, fixed fees, or a combination of both. Furthermore, staying informed and abreast of current developments is imperative for advisors to maintain their expertise.
  • Risk Management Proficiency: Mitigating risk through diversification, wherein investments span across multiple avenues, is essential. A proficient fund advisor should adeptly navigate this strategy to minimize risks while maximizing returns for your portfolio.
  • Client Engagement: Prior to determining the optimal approach, it is crucial for your mutual fund advisor to gain a thorough understanding of your objectives. Beyond initial assessments, ongoing communication is vital to track progress towards both short-term and long-term goals. Accessibility to clients is paramount for effective collaboration.
  • Dynamic Portfolio Oversight: A competent fund advisor should possess the capability to adapt your portfolio in alignment with evolving goals. Remaining vigilant, they must promptly withdraw from any precarious or underperforming investments to uphold the portfolio's integrity.

How to choose a Mutual Funds Advisor?

Choosing the right mutual fund advisor is crucial for your financial well-being. Here are some factors to consider while choosing the right mutual fund advisor:

  1. Experience: Look for mutual fund advisors who have experience in the industry. Experienced fund advisors attract a large number of investors.
  2. Transparency: Seek transparency regarding commission. A mutual fund advisor may earn commission directly from the fund house or perform the job of a distributor to sell schemes of that fund house.
  3. Approach: Know their approach towards investment planning. Typically, the best mutual fund advisors opt for a holistic approach towards investment planning.
  4. Referrals: Demand referrals from the mutual fund advisor. Referrals can help you understand the quality of service provided by the advisor.
  5. Take your time: Take your time to choose the right mutual fund advisor. Rushing into a decision can lead to poor investment choices.

How to become Mutual Fund Advisor

To become a mutual fund advisor in India, you need to follow these steps:

  1. Apply for the NISM exam: Candidates wishing to become mutual fund advisors should first register for the National Institute of Securities Markets (NISM) Series V-A Mutual Fund Distributors Certification Examination.
  2. Pass the NISM exam: After passing the exam, the candidate will receive their certification to be a mutual fund advisor.
  3. Know your clients: As a mutual fund advisor, it is essential to understand the client’s investment goals and needs. This will help you provide personalised financial advice to your clients.
  4. Stay updated: Keep yourself updated with the latest financial market trends and mutual fund schemes.

SEBI regulations for mf financial advisors

The Securities and Exchange Board of India (SEBI) serves as the regulatory authority overseeing mutual funds within India. In order to safeguard the interests of investors, SEBI has established regulations governing Mutual Fund Financial Advisors (MFAs).

Key directives for MFAs encompass:

  1. Registration: SEBI mandates that all mutual fund advisors undergo registration. Eligibility for registration entails meeting specific criteria, including possessing a minimum educational qualification and successfully passing a certification examination.
  2. Suitability: Optimal mutual fund advisors in India are tasked with recommending appropriate mutual fund schemes tailored to their clients' risk tolerance and investment objectives.
  3. Conflict Resolution: MFAs are obligated to disclose any conflicts of interest to their clients prior to offering recommendations.
  4. Code of Conduct: Adherence to a prescribed code of conduct by SEBI is mandatory for financial advisors. This code delineates the ethical standards that MFAs are required to uphold.

Difference between Mutual Fund Advisors & Fund Managers

Mutual fund advisors and fund managers are two distinct roles in the mutual fund industry. While mutual fund advisors provide financial advice to investors on mutual funds, fund managers are responsible for managing the mutual fund schemes. Fund managers are responsible for making investment decisions on behalf of the investors. They are responsible for the performance of the mutual fund scheme. Mutual fund advisors, on the other hand, provide financial advice to investors on mutual funds. They help investors build a portfolio of mutual fund schemes that are in line with their financial objectives.


Mutual fund advisors play a crucial role in guiding investors towards the suitable mutual fund schemes that align with their financial goals. They provide unbiased and accurate information regarding different schemes and help investors build a portfolio of mutual fund schemes that are in line with their financial objectives. Choosing the right mutual fund advisor is crucial for your financial well-being.

Bajaj Finserv Mutual Funds Platform offers 1000+ mutual fund options for you to choose from. Diversify your portfolio and invest in your desired scheme today. Click on the “Explore Funds” button on top of this page!

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Frequently asked questions

Who is a mutual fund advisor?

A mutual fund advisor is a financial professional who provides guidance on selecting and managing mutual fund investments.

What does a mutual advisor do?

A mutual fund advisor helps clients choose suitable mutual funds based on their financial goals and risk tolerance and provides ongoing portfolio management.

Is mutual fund advisor a good job?

Becoming a mutual fund advisor can be a rewarding career for those passionate about finance, offering opportunities for growth and helping clients achieve their financial objectives.

What is the salary of a mutual fund advisor?

Salaries for mutual fund advisors can vary widely depending on factors such as experience, location, and employer, but can range from moderate to high earnings.

How much commission does a mutual fund agent get?

Mutual fund agents typically earn commissions based on the amount of assets under management (AUM), with rates varying among different fund companies and products.

How do I become a mutual fund advisor?

To become a mutual fund advisor, one must typically obtain relevant education, pass certification exams such as those offered by NISM, and register with regulatory authorities like SEBI in India.

Who is the best mutual fund advisor in India?

Determining the best mutual fund advisor in India depends on individual preferences, such as expertise, reputation, and compatibility with client needs and goals.

What is the eligibility for an investment advisor?

Eligibility criteria for becoming an investment advisor typically include meeting minimum educational qualifications, passing relevant certification exams, and registering with regulatory bodies like SEBI.

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