Association of Mutual Funds(AMFI) in India has launched an ‘Internship Plan’ under a Regulatory Sandbox initiative for grooming mutual fund distributors with an objective to increase the number of individual MFDs and stimulate financial inclusion.

The programme is targeted at 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 and for those desirous of starting their own venture as self-employed entrepreneurs.

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, operational set-up, training on operational aspects and client acquisition along with a stipulated monthly stipend of up to ₹15,000 for one year.

The apprentice MFD will be empanelled with only one sponsor AMC during the period of apprenticeship. Under the current trail commission model it takes a few years for new distributors to build a sizeable AUM that could provide reasonable income for new entrants.

SEBI accedes to plea

SEBI has acceded to AMFI’s request for relaxation in the above stipulation, so that the AMCs could pay a reasonable stipend to the trainee MFDs during the initial phase of one year, till the apprentice MFD builds up sustainable clientele and AUM.

A Balasubramanian, Chairman, AMFI said the mutual fund industry looks to add about 5,000 apprentice MFDs this year who will be trained and supported by the industry till they are ready to be on their own.

NS Venkatesh, Chief Executive, AMFI said the initiative will ramp up the distribution footprint thereby widening the investor base for the mutual fund industry across the country and create self-reliant entrepreneurs who aid the larger objective of financial inclusion.

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