#arnnumber

Arn Code in mutual fund 

An application reference number is referred to as ARN. Each certified mutual fund distributor or expert is given a different number that they can use to trade in different schemes.

WHY is ARN CODE required?

Everyone has heard the television commercial phrase, "Mutual fund investments are subject to market risk." But that doesn't mean one can't take greater precautions to lower the danger. Therefore, it is the intermediary's responsibility to inform and educate the investor about the potential hazards. The interests of all parties to the transaction will be protected in this way.

To protect investors, SEBI and AMFI take several steps. One such step entails requiring distributors to get an ARN code. For instance, the National Institute of Securities Markets (NISM) certification is required by the Association of Mutual Funds in India (AMFI) for all intermediaries engaged in the sale or marketing of mutual funds. They must sign up with AMFI to acquire certification after passing the exam.

How to get an ARN code?

Computer Age Management Services Pvt. Ltd. (CAMS) handles the registration processing and ARN issuance on behalf of AMFI.

The form on which intermediaries should apply is specified. It is accessible online and in the AMFI and CAMS offices. 

From the CAMS online service, you may also apply.

Send the application form and the acknowledgment from Know Your Dealer (KYD). 

The person must physically produce the KYD application form after applying for it.

A copy of the intermediary's NISM certification, an Aadhaar card, a PAN card, verification of a bank account, and two passport-size photos are required.

The mutual fund industry in India is booming and there lies an amazing career opportunity for you. Start your own mutual fund distribution business and feel complete financial freedom. Mutual fund distributors earn handsome commissions on mutual fund investments of their clients. If you think you have what it takes to become a successful mutual fund distributor, then start your journey today. Now you may be wondering about the process. Well, here it is: 

Get NISM Certification 

Not sure what is NISM certification ? NISM or the National Institute of Securities Markets is a trust established by SEBI in 2006 to offer mandatory certification for individuals in the securities market. You can register for the exam on the official NISM website. While there are several courses or certifications available, the NISM Series V A certification exam is the one essential to become a mutual fund distributor. 

Apply for ARN Number

Not sure what is ARN code? ARN number or ARN code, short for AMFI registration number, is a unique code assigned to a registered mutual fund distributor by the Association of Mutual Funds in India. This number is a testament to the legitimacy of the distributor. Once you have successfully cleared the NISM V A Mutual Fund Distributor exam, and obtained your passing certificate, then the next step is to apply for the ARN number with the AMFI. Several other documents, such as PAN Card Copy, Aadhaar Card Copy, Passport-sized Photo, Proof of Bank Account, etc are required at the time of application. 

Register with AMCs

Once you have your ARN number, you can become a mutual fund distributor and start selling units of mutual fund schemes to your clients. The only thing left to do now is register with asset management companies. These are the organizations that run mutual funds. You can also sign up with large distributors that have partnerships with these asset management companies and start onboarding clients. 

The National Institute of Securities Markets, NISM in short, was established by SEBI in 2006 with the primary objective of offering courses to improve the expertise of individuals participating in the securities market. Today, NISM offers myriad courses to build capacity and skills in research, analytics, etc. for people who wish to have a career in the securities arena. All Nism Certification Courses are segmented into 28 modules, also known as series, as well as some additional exams. While a majority of these are compulsory for people looking to work in the industry, some are optional and created to update learners about the new practices and developments in the space. 

Here are some of the most popular modules offered by NISM. 

NISM Series I: Currency Derivatives Certification Examination

NISM Series II A: Registrars and Transfer Agents (Corporate) Certification Examination

NISM Series II B: Registrars and Transfer Agents (Mutual Fund) Certification Examination

NISM Series-III-A: Securities Intermediaries Compliance (Non-Fund) Certification Examination

NISM Series III B: Issuers Compliance Certification Examination+

NISM Series IV: Interest Rates Derivatives Certification Examination

NISM Series V A: Mutual Fund Distributors Certification Examination

NISM Series V-B: Mutual Fund Foundation Certification Examination

NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination

Amongst these, the most popular is the NISM Series V A exam to become a mutual fund distributor. It is the first step involved in the process, followed by applying for AMFI Registration Number or ARN number. You can also find NISM VA Mock Test online in case you wish to become a mutual fund agent or distributor and are currently preparing for the certification exam. 

NISM Certification Course Fee

Simply referred to as ARN Number, AMFI Registration Number is a unique number assigned to every registered mutual fund distributor in India. This number is mandatory for anyone seeking to facilitate buying and selling of mutual fund units for investors and earn commission on these investments. It is one of the measures established to safeguard investors and their investments as registration of mutual fund distributors reduces the chances of frauds and scams. Thus, ARN number in mutual fund have immense importance in the industry. 

Benefits of ARN Number in Mutual Fund

Here we elaborate on the many benefits of an ARN number. Read on!

Assurance – An increase in the number of frauds and scams in the mutual funds industry has led to paranoia amongst investors, making them hesitant and sceptical of mutual fund investments. ARN number can help assure such apprehensive investors about the legitimacy of the intermediary. 

Identity – ARN number in mutual fund is assigned by authorized body. Thus, it acts as an identity proof of the institution offering mutual fund investment options to investors. 

Tracking – Among the biggest benefits of ARN number is that it allows investors to track assets enlisted by their mediator. 

Distributor Change – Investors can use this ARN number while changing distributors. No charges for trail commissions are levied in case of distributor change. 

Calculation – Moreover, an ARN number also allows for seamless calculation of commission earned by a distributor on investments made by their clients. 

How to Apply for ARN Number

ARN Number or AMFI Registration Number is a unique number allotted to a mutual fund distributor or any person involved in the distribution or sale of mutual funds to investors. ARN Number in mutual funds can help to protect the interest of the investors and the involved intermediaries. Along with that, mutual fund distributors having an ARN Number can calculate & track the commissions they will receive on their AUM. At the time of mutual fund transactions, the investments of the clients of the mutual fund advisor are mapped to the ARN Number of the client. So, an ARN Holder will always be aware about his business. 

The regulatory body SEBI can also refer to the ARN Number allotted to a particular intermediary during the due diligence or for many matters to protect the interest of the investors.  

How to obtain ARN Number from AMFI?

To obtain the ARN Code in mutual funds and become an AMFI Registered Mutual Fund Distributor by holding an ARN Number, here is the registration process: 

Offline Process- You will have to visit your nearest CAMS branch, and fill the required ARN application form along with attaching the necessary documents like copy of NISM Certification, 2 passport size photographs, copy of KYD, etc. The AMFI application form can also be downloaded from the AMFI’s official website and you can fill the form & submit it in the branch. Also, you will have to attach the Demand Draft in favour of the Association of Mutual Funds in India. 

Online Process- For online application, you can visit the official website of AMFI and locate the register section for AMFI ARN number. Therein, you will have to fill in details like educational, personal, bank, signature, etc, to complete the application form. After that, the registration can be completed by paying the application fee of the ARN by AMFI through any mentioned payment mode like net banking, UPI, etc.

Upon successful application, The ARN number will be sent over to your mail within some days and you will also receive a hard copy of the ARN within a month.

What is the application fee for AMFI Registration Number?