Becoming a mutual fund distributor in India is a well-defined process with four steps and no hidden gatekeeping. There is no degree requirement and no employer sponsorship needed — you can do the whole thing as an individual.
Here is the route, in order, with what each step actually costs.
Step 1 — Clear NISM Series V-A
The NISM Series V-A: Mutual Fund Distributors Certification Examination is the qualifying exam. AMFI will not process an ARN application without a valid, unexpired NISM certificate.
| Questions | 100, one mark each |
| Duration | 120 minutes |
| Pass mark | 50% |
| Negative marking | None |
| Fee | ₹1,500 |
| Validity | 3 years |
Two things make this the friendliest of the common NISM exams. The pass mark is 50%, not the 60% used by Series VIII, XII and XV. And there is no negative marking, so you should never leave a question blank — a guess costs nothing and a blank is a guaranteed zero.
If you already hold a V-A certificate that has not yet expired, you can instead attend the one-day NISM Series V-A CPE programme to renew, without sitting the exam again. That option disappears the moment the certificate lapses.
Practise free on ScoreSetu — 743 NISM V-A questions organised by the workbook's own chapters, each with a detailed explanation and a memory hook, plus full-length timed mocks scored to the real 50% pass mark.
For the full exam breakdown, see our NISM V-A exam guide and the passing marks, fees and validity detail.
Step 2 — Complete KYD
Know Your Distributor is a mandatory verification every distributor completes at first registration.
Since 1 October 2024 it is entirely digital. The physical biometric appointment at a CAMS office has been discontinued; your identity is now authenticated against Aadhaar with UIDAI through CAMS, using an OTP. You will need your PAN and Aadhaar.
KYD must be completed and approved before your ARN application moves forward, so do it first rather than in parallel.
Step 3 — Apply to AMFI for your ARN
The AMFI Registration Number is what makes you a registered distributor. Apply through the AMFI distributor portal's online registration, attaching your NISM certificate, PAN and Aadhaar.
Fees for an individual or proprietorship are currently around ₹3,000 plus GST to register and about ₹1,500 plus GST to renew, with higher amounts for corporate applicants. AMFI has revised these more than once in recent years — they were halved, then raised again with effect from October 2024 — so check AMFI's published fee structure before you budget rather than relying on any figure you read second-hand, including this one.
Your ARN is valid for three years. Apply for renewal at least six months before it expires; letting it lapse is a genuinely expensive mistake, because renewal routes that depend on holding a current certificate close once you no longer do.
What about EUIN?
The Employee Unique Identification Number identifies the individual who actually advised a transaction, so that if mis-selling is alleged later the person can be traced even if they have since changed employer.
If you are an individual distributor, you receive an EUIN automatically along with your ARN at no extra cost. If you run a business with employees who interact with investors, each of them needs their own EUIN mapped to your ARN.
Step 4 — Empanel with AMCs
An ARN lets you distribute; empanelment with each asset management company is what lets you distribute their schemes and be paid for it. You do this fund house by fund house, submitting your ARN and KYD details.
Most distributors start with a handful of AMCs rather than all of them. There is no advantage to empanelling everywhere on day one, and each relationship carries its own paperwork.
What it costs, end to end
| Item | Approximate cost |
|---|---|
| NISM Series V-A exam | ₹1,500 |
| ARN registration (individual) | ~₹3,000 + GST |
| KYD | Included in the AMFI process |
| Study material | Free — NISM publishes the workbook |
| Total to get started | Roughly ₹5,000 |
That is the entire barrier to entry. Compare it with almost any other regulated financial-services role in India and it is remarkably low — which is exactly why the exam matters: the certification, not the capital, is the gate.
How long it takes
- Exam booking to result — days. NISM slots are frequent and the result is immediate.
- KYD — largely same-day now that it is Aadhaar-based.
- AMFI ARN processing — typically a couple of weeks.
- AMC empanelment — a few more weeks, varying by fund house.
Realistically, four to eight weeks from deciding to your first transaction, and the exam is the only part where the timeline is under your control.
The honest part
The licence is easy. The business is not.
Distribution income is now almost entirely trail commission — an annual percentage of the assets your clients hold, paid monthly, which starts near zero and compounds only as your book grows. SEBI banned upfront commission in 2018 precisely so that distributors are paid for retaining clients rather than for the sale. We have written up how mutual fund distributor commission actually works, including the B30 rules that changed in March 2026, because the economics surprise most new entrants.
Start with the exam. It is the only step with a pass mark, and everything else is administration.
Practise NISM V-A free — no signup — then take a timed mock to see where you stand.