Unhappy with your mutual fund distributor? Switching is not easy

As per SEBI data, as of 31st March 20118, there were 107,302 mutual fund distributors in India. The vast majority of mutual fund ‘advisors’ in India are actually distributors of mutual funds. This includes relationship managers in banks. They are paid on a commission basis by the fund houses and not by the customers. In case you are unsure who your distributor is, you can identify him from the AMFI Registration Number (ARN) that will be mentioned on your mutual fund statement. A mutual fund distributor is distinct from a SEBI Registered Financial Advisor (RIA) who cannot collect commissions and must instead directly charge you for financial advice. SEBI created this new intermediary in 2013 in order to reduce conflicts of interest and bias in financial advice. However, only 1,136 RIAs were registered in India as of 31st March 2018.

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