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Thursday, 10 June 2021

Home Learning Study materials Video | Standard 10

Home Learning Study materials Video | Standard 10 | DD Girnar-Diksha Portal Video @ https://diksha.gov.in





When it's about differentiating both of them it's quite difficult to do, as both assist in making investment decisions. That involves choosing MF schemes as well. Both are the enrolled entities and managed by the different regulatory body. As the Mutual Fund Distributor is under and controlled by AMFI ( The Association of Mutual Funds in India). And the Investment Advisors are controlled by SEBI (Securities and Exchange Board of India).




Before moving on first understand a difference lets discuss that who are mutual fund distributor and investment advisor is?

Investment Advisor- A Investment Advisor is an individual or group who give financing and investment advice. Even manages securities analysis in return for a fee, whether by direct administration of client assets or by written publications. If he has sufficient assets to be enrolled with the SEC is recognised as a Registered Investment Advisor or RIA. Investment Advisors are also known as "Financial Advisors". He/she do an evaluation of the investor's assets, liabilities, income and expenses and advise investment plan.

Mutual Fund Distributor - They be person or entity facilitating in buying and selling of MF units to the investors. They earn income in the form of commission for bringing leads(investors) for investing in MF schemes. He/she is expected to know the investor's situation, risk profile and suggest suitable investment plan to meet the investor's demands.

Getting a commission never means that a Mutual Fund distributor is allowed to trade the MF scheme to the investors just to get a commission. Well, the regulations are very severe in this respect.

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