Check how well qualified the dealer is in terms of education and what kind of knowledge and experience they have. The mutual fund advisor must have a good understanding of the different asset classes, such as stocks, fixed income, and gold.
He and his team should be in a position to figure out and understand how these asset classes would be affected by various national and international events. The assessor must be able to identify products that will meet your life stage requirements as they are needed.
Is your dealer easily accessible?
It is important that a dealer you trust with your money is accessible. The consultant or his team must be able to respond to his queries within a reasonable time and must be accessible by any means of communication that he chooses, which can be telephone, email and meetings. Time is of the essence in the financial world and he should be able to execute his investments quickly.
AMFI Registration Number (ARN)
The AMFI registration number (ARN) has been introduced as a unique code, which identifies the broker as ARMFA. In order to promote best practices and ethical standards in the business of selling Mutual Fund schemes, AMFI has formulated general guidelines and regulations, including a code of conduct for intermediaries, which will be applicable to ARMFA.
AMFI believes that a sincere effort to adhere to the guidelines and code would help promote healthy best practices in sales and marketing that would ultimately benefit all stakeholders: the investor, the broker, and the industry at large.
Meet your dealer or advisor
Services offered?
Most investors don't want to discuss their finances and investments with too many people over and over again, as these are confidential matters. They want an advisor who can handle their investments with confidentiality. Choose an advisor who is unbiased and can offer you mutual fund products from all fund houses.
Check past history
It is important to know the history of the person you entrust your money to. What field were click here you working in, what knowledge does the advisor possess. There is no formal rating or classification system for mutual fund distributor platform in India.
Therefore, in this scenario, the best way is to ask for references. Use social networking websites to find out if someone has recommended the advisor or her firm. That will give you an idea of their strengths. Look for references online, ask your friends or family for references, how long the consultant has been in business and how they operate.
How is the advisor compensated?
A good advisor needs to be well compensated. Ask your advisor if he uses a distribution model, in which he receives a commission from the fund house for each investment he makes. Alternatively, some advisers charge you a fee for the service, depending on the time they have to spend with you or your personalized requirements.
There are many online portals like online platform for mutual fund distributor that help you make a financial plan by collecting your data and it might be free while there are experienced financial planners that might charge a fee for the same. A comprehensive financial plan takes effort to accomplish and takes into account your ability to take risks, your future needs, and your life goals.
MF Online Dealer
From a regulatory perspective, distribution is experiencing many disruptions. Traditional distribution, or the agent-driven model, which is fragmented, is subject to many challenges and regulations are slowly moving in favor of digitization. Although offline mode is still a big contributor, online transactions are picking up due to easing of regulations and increased acceptance of the product. Few like us fincash.com are in the online category.
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