Amfi launches internship plan to increase number of MF distributors

Amfi announced the launch of an internship programme to groom qualifying individuals as mutual fund distributors

Industry body Amfi on Monday announced the launch of an internship programme to groom qualifying individuals as mutual fund distributors, with an aim to increase the number of such distributors in the country and stimulate financial inclusion.

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

"We are looking to add around 5,000 apprentice MFDs this year who will be trained and supported by the industry till they are ready to be on their own," A Balasubramanian, Chairman of the Association of Mutual Funds in India (Amfi), said.

Individuals aspiring to become MFDs under this scheme will have an exclusive empanelment and tie-up with a specific sponsor AMC for a period of 12 months.

During this period, the apprentice MFD will be supported by the sponsoring AMC towards getting the requisite NISM certification, acquiring AMFI Registration Number (ARN), operational set-up, training on operational aspects and client acquisition, along with a stipulated monthly stipend of up to Rs 15,000 for a maximum of 12 months.

The apprentice MFD will be empanelled with only one sponsor asset management company (AMC) during the period of apprenticeship but will be free to empanel with more AMCs after the completion of this initial period.

The internship plan is targeted towards fresh graduates, educated but unemployed individuals, especially those who may have lost their jobs and earnings due to the COVID pandemic, retirees, women and housewives who may have taken a mid-career break to take care of their young ones, and all of those now desirous of starting their own venture as self-employed entrepreneurs.

"This initiative of apprentice MFD aims to ramp up the distribution footprint thereby widening the investor base for the mutual fund industry across the country. In addition, this programme aims to create self-reliant entrepreneurs that will aid the larger objective of financial inclusion," N S Venkatesh, Chief Executive, Amfi, said.