LIC Mutual Fund Distributor or Seller – Commission, Cost, Profits & more

LIC Mutual Fund is among the most recognizable names in the Indian financial sector.

It was founded in 1989 by T. S. Ramakrishnan, and since then, it has maintained an above-average CRISIL rating and has tens of thousands of clients.

LIC Mutual Fund now offers more than twenty MF plans to its customers, which means there’s something for everyone.

If you are thinking about getting a mutual fund distributorship, becoming an LIC Mutual Fund Distributor is one of the best options that you could go for.

Keep reading to find out all the information, including LIC mutual fund commission, monthly profits, office requirements, ARN generation support, eligibility criteria, etc.; you need to know if you wish to become a LIC Mutual Fund Seller.

Why become a LIC Mutual Fund Distributor?

When people invest in mutual funds, they first want to know the company’s dependability factor.

LIC has such a name recognition in India that if you are a LIC Mutual Fund Advisor, you won’t even need to say a word to make customers believe the company is trustworthy.

As a distributor, half your work is done when you have gained customer trust. Your profit will soar with a growing, loyal client base because a distributor makes money through commissions on AUM.

These are the reasons why you should consider becoming a LIC mutual fund distributor:

• The company’s brand image and name recognition help you quickly acquire a large client base.
• The Distributors Commission of LIC Mutual Fund is highly profitable.
• LIC Mutual Fund offers assistance with training and marketing that helps distributors adapt to the changing financial market.
• The company offers a cutting-edge dashboard that you can use to keep track of leads, profits, client profiles, etc.
• LIC Mutual Fund offers a whole range of reliable funds that help you pitch to your clients about the versatility and benefits of LIC MF.
• The company also provides all its distributors with ARN generation, RM, and acquisition support.

LIC Mutual Fund has more than 750 satisfied distributors because the company offers good commissions that help distributors make large amounts of profit.

 LIC Distributor Commission varies between 1% and 2% of a distributor’s total AUM (assets under management).

If you manage 20 clients, and the total AUM of your clients is Rs.2 crore, your commission would range between Rs.2 lakh and Rs.4 lakh.

However, LIC Mutual Fund offers no client acquisition commission, and your clients need to invest for you to make a profit.

The distributor fee is the amount an applicant pays the company to receive the distributorship. LIC Mutual Fund Distributor Cost is just Rs.80,000, well within what most people can pay.

It would help if you remembered that even though the distributorship fee is a one-time fixed payment, there is another fee you have to pay every month.

LIC Mutual Fund charges its distributors a monthly fee of Rs.40,000 – Rs.50,000 for Office Expenses.

The amount depends on the type of office space, number of employees, available facilities, and other factors.

LIC Mutual Fund Distributorship – Expected Profits & Income

The table below shows expected profits, AUMs & Income that you can make, if you become LIC MF Advisor.

The profit you can make from a mutual fund distributorship depends on the commission the AMC offers its distributors.

People are drawn to LIC mainly because LIC Mutual Fund Seller Profits are among the industry’s best. Let’s say you have 15 Active Lumpsum clients and 575 Active SIP Clients.

Avg. AUM per Lumpsum Client is Rs.98,000, so the Total AUM for 15 clients is Rs.14,70,000. Avg. AUM per SIP Client is Rs.9,800, so the Total AUM for 575 SIP clients is Rs.56,35,000.

In this case, you have a total AUM of Rs.71,05,000. If you receive a Distributor’s Share of 1.5% of the total AUM, you make a profit of Rs.10,6575.

But remember, you also have monthly office expenses you pay the company. Let’s say your total monthly expenses are Rs.56,000.

So, your net profit is Rs.50,575, which means you get a Net Profit Margin of 47.45% every month.

After you round up the number, it is fair to say that with LIC Mutual Fund, you can have an average net profit margin of 50% each month.

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Agent offers the core benefits a distributor receives from the company. LIC Mutual Fund Agent Offers are distributor-friendly and profitable.

• All agents receive a commission above 1% of the total AUM, which can go as high as 2%. Such high commission percentages help distributors profit quickly.
• The distributorship fee is a one-time fixed amount for all distributors.
• LIC Mutual Fund offers Free Advisory services to help distributors more effectively convince clients to invest.
• Distributors can offer their clients Direct Mutual Fund investment options.

LIC Mutual Fund Distributorship SWOT Analysis

A SWOT analysis can identify a company’s internal strengths and weaknesses and the external opportunities and threats.

It is a proven method that anyone can use to analyze any company’s current position and future possibilities.

Here is the SWOT analysis of LIC Mutual Fund Advisor:

Strength

• The LIC brand is well-known in India, and people see it as one of the most dependable companies. As a LIC Mutual Fund distributor, you can use this trust factor and convince your clients to invest large amounts.
• LIC has a solid physical presence all over the country, and it also has an extensive distributor network. This factor helps the company provide customer care services quickly.
• Regarding mutual fund investment, not all customers are happy with taking risks, but the company offers many products that even the most risk-averse customers can choose from.
• LIC Mutual Fund has established an excellent brand reputation by providing transparent and convenient services to its clients.
• The company has seen a comfortable growth rate for many years and has provided high returns. High return rates attract more investments, which means the distributor makes more profit.

Weakness

• The advertising strategy of LIC Mutual Fund is rather old-fashioned and may need to be more to attract the new tech-savvy generation.
• LIC Mutual Fund has sometimes struggled to provide timely assistance because of its high customer load. If clients become satisfied with customer service, it may become easier to retain clients.
• The company needs to invest more in technology, a factor that can stop company growth as the financial sector is becoming entirely tech-dependent.

Opportunities

• If LIC Mutual Fund upgrades its online presence and provides more online services, the distributors can draw younger customers to its services.
• A social media presence can also increase the company’s visibility to the younger generations. With more visibility, new customers will become interested in its MF options.
• The large middle class is becoming more interested in investment opportunities, a trend distributors can benefit from.

Threats

• There are now too many AMCs operating in the Indian market, and the competition has grown almost exponentially.
• The threat of inflation can make many people cautious about mutual fund investments.
• International financial market trouble also affects Indian markets. A chance of financial loss can stop people from investing large amounts.

Distributorship can help you make large sums of money, but you will need the necessary support to run the process smoothly as a distributor.

Fortunately, LIC Distributor Support is efficient, and the company will help you solve any issues you might face as a distributor.

Apart from that, LIC Mutual Fund also offers additional support to all its distributors.

• ARN generation support is necessary for maintaining revenue generation information.
• The company offers Acquisition Support and Products Training to help the distributors with their jobs.
• LIC Mutual Fund also offers Advisory Support and free RM Support, unlike many other AMCs.
• It will also give you Backoffice Support, but Marketing Support is only available in a limited manner.

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Remember the company requirements when choosing an office to run your LIC Mutual Fund distributorship. As a LIC MF Distributor, you pay a monthly fee for office expenses.

• The place needs to be at least 200 – 300 Sq. Ft.
• A minimum of two employees should work in the office.
• A Dealer Terminal, a Manager’s Cabin, or a Reception is optional.
• The office must have mobile/telephone connections and computer access.
• Call Recording options and CCTV are also optional.

Every distributor receives access to a LIC Mutual Fund Advisor Dashboard they can use to check client portfolio, AUM, profits, and other information.

The dashboard is provided after the distributor has officially joined the company. Login information and password needed to access the dashboard is sent to the distributor’s registered email address.

This dashboard can be used to view lead generation and to access advisory help. You can access the LIC Mutual Fund dashboard from the link provided in the table above.

LIC Mutual Fund Agent Login

When your distributorship application is approved, and you have submitted the Distributorship Fee, the company will send you the LIC Mutual Fund Advisor Login information.

These are the login details and password you need to access your dashboard. The login information gets sent to the registered email address.

You may use the same login information to access your distributor account and the dashboard.

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If you want to become an LIC Mutual Fund Distributor, you can directly apply for distributorship online.

Follow these steps to sign up with LIC Mutual Fund as a distributor:

• Click on the “Become a Distributor” option on the website.
• Fill up the form and provide your name, address, phone number, email, etc.
• Upload the necessary documents.
• After successfully submitting the form, the company will call you to give further instructions.
• If you pass the verification process, you become a distributor.

These are the mandatory documents you need to submit:

• Distributorship Agreement
• Identity Proof – Aadhaar
• Address Proof – Aadhaar / Rental Agreement
• PAN
• Passport Size Photo
• Bank Account Details
• Bank Canceled Cheque

You must pass the eligibility criteria to become a distributor:

• You must be at least 24 years old
• It would help if you were an Indian national
• The minimum academic qualification is graduation
• Having a NISM Certificate is mandatory
• ARN Generation is mandatory

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LIC MF Distributor – Conclusion

LIC Mutual Fund is one of the most popular and most trusted AMCs. Becoming an LIC MF Distributor is a respectable career choice and helps you make large profits.

The company offers good commissions, but distributors need extra help to succeed in this business.

We have given you all the details of LIC Mutual Fund, including a SWOT analysis, so you can decide on acquiring an LIC MF distributorship.

FAQs on LIC Mutual Fund Distributor

Here is the list of FAQs related to the LIC Mutual fund Distributorship.

How many distributors does LIC have?

LIC Mutual Fund has more than 750 distributors all across the country.

Is LIC Mutual Fund Agency Safe?

Yes. LIC Mutual Fund is one of the most trusted and dependable AMCs.

What is the LIC Mutual Fund Distributor Commission?

LIC Mutual Fund offers a 1% – 2% distributor commission on the total AUM.

How much are LIC Distributorship Fees?

LIC Mutual Fund distributorship fee is a one-time fixed amount of Rs. 80,000.

Does LIC provide ARN Generation Support?

Yes. LIC Mutual Fund offers ARN generation support to the distributors.

Is LIC a Stock Broker?

No. LIC Mutual Fund is not a stockbroker. It is an asset management company.

Is LIC an AMC?

Yes. LIC Mutual Fund is an AMC, one of the most well-known in India.

Who is the founder of LIC?

S. Ramakrishnan is the founder of LIC Mutual Fund. He founded the company in 1989 in Mumbai.

Is LIC registered with SEBI?

Yes. LIC Mutual Fund is SEBI-registered.

Does LIC Distributor provide Direct MF Investment?

Yes. LIC Mutual Fund distributors provide direct MF investment to the clients.