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Everything you need to know about Chartered Mutual Fund Counselor 

For several individuals, mutual funds have risen as a preferred option to boost their wealth. Nevertheless, for beginners, the complex world of investments can be somewhat daunting. 

Mutual funds provide a convenient gateway to investing, although grasping a detailed understanding of them requires some initial groundwork. Moreover, the choice of an apt advisor to guide you through this journey is pivotal. 

This article brings to light the role of a Chartered Mutual Fund Counselor (CMFC) and the primary considerations for selecting a trusted financial advisor. 

Understanding mutual fund

Let’s say you want to buy something pricey. So, you and your friends decide to pool money and buy that product – that is essentially what a mutual fund is, but on a much larger scale. 

Mutual funds collect funds from individuals like you and me, and they redirect this capital into various assets such as shares, bonds, or other securities. It is like getting a piece of the cake­ without purchasing the entire thing. 

This spread of investments (diversification) broadens your exposure to a larger asset pool that might be difficult to handle solo.

Additional perks include:

  • Professional management, 
  • The opportunity to liquidate assets quickly and 
  • The lack of need for vast investment understanding or substantial capital.

Investors are presented with a diverse selection of mutual funds, which can be aligned with their financial objectives, risk tolerance, and time horizon for investments. The options cover equity, debt, hybrid, index funds, etc.  

Chartered Mutual Fund Counselor (CMFC) – An overview

The Chartered Mutual Fund Counselor (CMFC) is a title bestowed upon professionals advising on mutual funds. Originally, this title was awarded by the College for Financial Planning, currently a division of Kaplan, to professionals in the financial sector. 

These professionals have successfully completed an intensive study program and passed an examination focused on topics relating to mutual funds.

Even though the Kaplan/College for Financial Planning ceased providing this certification in 2021, they still endorsed this title. The CMFC course presents an in-depth understanding of various investment topics, spanning across all aspects of mutual funds and their usage as investment tools.

This title forms part of a series of titles that originated from the Certified Financial Planner (CFP) designation, which was instrumental in laying down the founding stones of the financial planning industry in the 1970s.

Once you have successfully completed the program, you earn the right to add the CMFC title to your name for two years. This could potentially elevate your career opportunities, professional image, and chartered mutual fund counselor salary. 

Keeping the title involves adhering to a yearly requirement of 16 hours of continuing education and a nominal fee.

Those with CMFC certification guide clients in mutual fund selection. The Chartered Mutual Fund Counselor curriculum emphasises comprehending mutual funds and applying such understanding to client advice.

How to become a mutual fund advisor in India? 

To pursue a career as a mutual fund advisor in India, it is essential to pass the “NISM Series-VA Mutual Fund Distributors Certification” exam, as it is a compulsory requirement. The examination is administered by NISM (National Institute of Securities Market). 

You can register for the NISM Series VA Mutual Fund Distributors Certification by visiting the NISM official website. Following this, you must finish the­ NISM’s Continuing Professional Education (CPE) Training Program.

Note that the certificate remains active for three years following the completion of the examination.

Passing the NISM distributor examination is a prerequisite, but it is only the beginning. After clearing the test, you must obtain an AMFI Registration Number (ARN). 

Before that, you need to do the Know Your Distributor (KYD) procedure, followed by an application to AMFI for an ARN. With this, the advisor is equipped and authorised to begin assisting investors in investing in mutual funds.

Considerations for selecting a trusted financial advisor

  • Ensure your advisors possess relevant qualifications, such as CMFC, NISM accreditation, etc. 
  • Take into account the advisor’s experience in finance and their knowledge of mutual funds and various investment instruments.
  • Opt for a consultant who maintains clarity regarding their service fees, associated costs, and investment recommendations. 
  • Select a consultant operating under the principle of fiduciary duty, meaning, by law, they must always act in your favour. This guarantees unconflicted, goal-aligned advice.
  • Select an advisor who dedicates effort to comprehending your distinct financial circumstances, objectives, and risk appetite.


As we wrap up, it is vital to remember that choosing a financial advisor is a cornerstone decision – capable of directing the course of your financial future. Make this choice thoughtfully, prioritising traits such as experience, transparency, and objectivity. 

You will see that the realm of mutual funds is not something to dread but an area to be explored and mastered. 

Begin this journey with confidence, and understand that possessing the right advisor and a sound grasp of mutual funds can make your journey fruitful!


What is mutual fund chartered counsel?

The Chartered Mutual Fund Counselor, or CMFC, is a title earned by professionals advising on mutual funds who complete a study program and pass an exam on mutual fund topics. It was formerly granted by the College for Financial Planning, which is now a division of Kaplan.

How do I become a CMFC?

To get their CMFC certification, financial advisors need to finish a course that lasts 10 weeks. Plus, they need to pass a test. The course covers many topics about investment and it is really important for the students to fully understand these topics. After that, they must do 16 hours of ongoing education every two years to maintain their certification.

Is mutual fund advisor a good job?

Indeed, the role of a mutual fund advisor can be rewarding. It involves planning investments, assessment of risk tolerance, diversification of investment portfolios, and portfolio rebalancing. 
Advisors play a crucial role in assisting investors to make knowledgeable investment decisions.

How do I start a career in mutual funds?

To start a career in mutual funds, you need to pass the “NISM Series-VA Mutual Fund Distributors Certification” exam. The examination is administered by NISM (National Institute of Securities Market). 

How do I become a MF distributor?

To become a MF distributor, you need to pass the “NISM Series-VA Mutual Fund Distributors Certification” exam. Further, you need to attend the NISM’s Continuing Professional Education (CPE) Training Program and obtain an AMFI Registration Number (ARN). 

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