Yesterday we looked at the reasons why a financial adviser could well be a necessity.

This post looks at the different types of entities offering their services.  

MUTUAL FUND DISTRIBUTOR (MFD)

Mutual fund distributors are registered with the Association of Mutual Funds in India and are required to abide by AMFI guidelines and code of ethics. AMFI issues a license known as AMFI Registration Number, or ARN, which permits distributors to sell mutual funds. This license is valid for a period of three years. You can search the AMFI website to see if the distributor’s license is still valid; you can also check here if the distributor’s license has been suspended for any wrongdoing.

Distributors earnings are tied to the amount of assets invested…



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