Mutual fund distributor (intermediary role)

Mon, 18 May 2026 00:00:00 +0000

A mutual fund distributor in India is the SEBI-recognised intermediary that sells regular-plan mutual fund schemes to investors in return for distribution commission. Distributors are registered through the AMFI Registration Number (ARN) framework, which licenses individuals and entities to distribute mutual fund schemes on behalf of AMCs. The ARN system was introduced in 2002 and has become the foundational licensing infrastructure for the Indian mutual fund distribution industry.

For Indian retail investors who prefer human-mediated advice over self-directed investing, distributors provide the intermediation layer between the investor and the AMC. The distributor explains scheme features, assists with subscription, monitors investments, and provides ongoing advice. In return, the AMC pays the distributor commission embedded in the regular-plan TER , creating the distinct regular-plan-vs-direct-plan pricing structure.

MF Distributor on WebNotes

Mutual fund distributor (intermediary role)