What an AMFI-registered distributor can and cannot do

In India, distributor, adviser and agent are often used as if they mean the same thing. They do not. The difference decides what someone is allowed to promise and how they are paid.

RK Wealth is an AMFI-Registered Mutual Fund Distributor. We facilitate distribution of mutual fund products and provide investor support and educational information. We do not provide investment advisory services and do not charge investors a fee for advice.

What a distributor typically does

• Helps you understand categories, process, KYC and documentation.
• Explains scheme features and risks using AMC documents — and urges you to read SID/SAI/KIM.
• Facilitates transactions in Regular plans and stays available for servicing questions.
• Highlights that mutual fund investments are subject to market risks.

What a distributor must not do

• Assure or guarantee returns, or present mutual funds as risk-free income products.
• Hide material risks, exit loads or conflicts.
• Use titles like Investment Adviser / Wealth Adviser unless separately registered for that role with SEBI.
• Let commission alone decide a recommendation — investor interest comes first under AMFI’s Code of Conduct.

How remuneration works

Distributors are generally paid commission by the AMC from the scheme (reflected in Regular plan expenses). You should receive commission disclosure at investment time. Direct plans exist with lower expense ratios; distributors are not entitled to commission on Direct plans.

• Ask for the ARN and verify it on AMFI’s public register.
• Ask in what capacity the person is acting — distributor or SEBI-registered adviser.
• Ask how the suggestion connects to your stated goal and time horizon.
• Ask where to read the scheme-related documents and risk factors.