Amfi launches an internship plan to increase the number of mutual fund distributors

Industry body Amfi on Monday announced the launch of an internship program to train qualified individuals as mutual fund distributors, with the aim of increasing the number of such distributors in the country and boosting the financial inclusion.

The internship plan is being piloted under a regulatory sandbox project approved by the market regulator Securities and Exchange Board of India (Sebi) to increase the number of individual mutual fund (MFD) distributors in the country.

“We are looking to add around 5,000 MFD apprentices this year who will be trained and supported by industry until they are ready to be self-sufficient,” said A Balasubramanian, Chairman of the Association of Mutual Funds in India. (Amfi).

Those aspiring to become MFDs under this program will benefit from exclusive recruitment and a link to a specific AMC sponsor for a period of 12 months.

During this period, the MFD apprentice will be supported by the sponsoring AMC to obtain the required NISM certification, acquire the AMFI Registration Number (ARN), operational setup, training on operational aspects and acquisition of clients, as well as a stipulated monthly allowance up to Rs 15,000 for a maximum of 12 months.

The MFD Apprentice will be incorporated with a single sponsoring Asset Management Company (AMC) during the apprenticeship period, but will be free to engage with multiple AMCs after the end of this initial period.

The internship plan is for new graduates, educated but unemployed people, especially those who may have lost their jobs and income due to the COVID pandemic, retirees, women and housewives who may have taken a mid-career break to care for their young ones and anyone who now wants to start their own business as independent entrepreneurs.

“This MFD apprentice initiative aims to grow the distribution footprint, thereby broadening the investor base for the mutual fund industry across the country. In addition, this program aims to create self-directed entrepreneurs who will contribute to the broader goal of financial inclusion,” NS Venkatesh, Amfi’s chief executive, said.

Dolores W. Simon