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

Working for SBI is a dream for many in India, and by becoming a SBI Mutual Fund Distributor, you can fulfil that dream of yours.

SBI Mutual Funds are one of the oldest mutual fund houses in the country, with a vast network of mutual fund distributors.

This article will help you understand how SBI Mutual Fund Seller can empanel himself with SBI MF and the benefits and commission he will receive.

The article will also discuss the expenses he needs to cover to set up and run his MF distribution business.

Why become SBI Mutual Fund Distributor?

If you are thinking about why you should become an SBI Mutual Fund Advisor, then here are some points you can consider –

• SBI Mutual Fund offers MF distribution business opportunities at very reasonable charges. It helps new distributors or people starting their careers start with minimal investments.
• The company does not restrict SBI MF distributors to work from a particular place. The entire system is digitalised; thus, one can work from anywhere worldwide.
• There are advanced partner portals to keep all your business information and data in place, which again helps in working remotely.
• The revenue-sharing structure of SBI MF allows you to earn uncapped profits.
• The process of empanelling distributors with SBI MF is super simple and hassle-free.

Coming to the SBI Distributor Commission usually varies from 1% of the asset under management to a maximum of 2%.

You must be thinking, how come a maximum of 2% commission can help generate uncapped profits, aren’t you? The answer is here.

You can keep on adding clients, and as your client base increases, the asset under management (AUM) will also increase.

Therefore, the earnings and profits will also grow even when the commission sharing is at a maximum of 2%.

Suppose you started with ten clients with an aggregated AUM of Rs.10 lakhs. Your commission rate is 2%, and you can generate earnings of Rs.20,000 monthly.

After a year, your clientele has grown to 100 with a total AUM of Rs.1 crore. Given the same 2% commission rate, you will earn Rs.2 lakhs monthly.

Now coming to one of the essential factors is SBI Mutual Fund Distributor Cost. While the investment or cost is nominal, you need to know it in detail.

So, like any other mutual fund distributor, you must pay a distributorship fee to SBI Mutual Funds.

This is a fixed fee of Rs.1 lakh, a one-time fee that you must pay when applying for distributorship with SBI MF.

Apart from this, if you run the business by setting up an office, then you will have to bear the office expenses. Usually, office expenses average outs around Rs.45000 to Rs.60,000 monthly.

Therefore, the initial outlay can be only Rs.1 lakh, and then if you remotely work, you do not have to incur any office expenses, which can bring down the overall costs and boost your profit margins.

SBI Mutual Fund Distributorship – Expected Profits & Income

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

As discussed in the above section, the SBI Mutual Fund Seller’s Profits can increase when the expenses come down. This is how it works; let’s understand this with an example.

Suppose you have around 745 clients, including both SIP and lump sum. Let’s say the total AUM from all these clients is Rs.1,00,82,500.

Now, if you take the average commission, which is 1.5%, then your monthly earnings will be Rs.1,26,031.25, from which you need to deduct the expenses (variable), which is around Rs.56,000; you will be left out with Rs. 69531.25 which is 55.17% profit margin.

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As mutual fund distributors with SBI MF, you will be entitled to receive certain SBI Mutual Fund Agent Offers.

These are offers specifically designed for distributors to attract their potential clients. The offers can range from low investment to start the business to free advisory.

If you are wondering how these offers can help you attract clients, let us understand this with an example.

Suppose you have one potential client who wants to invest in mutual funds, but since he has never invested before, he is unsure of which funds to choose and how to invest.

Now, SBI MF offers free advisory, which can be helpful in this situation. You can seek advice from the advisory team at SBI MF to analyse the potential client’s profile, risk appetite, risk profile and investment goals to suggest the funds he can pick from.

Now, the advisory team will provide you with the details, and then you share the same with the potential client. This will solve the client’s unawareness issue and help you earn more.

SBI Mutual Fund Distributor SWOT Analysis

Check out SWOT Analysis on SBI Mutual Fund Distributorship.

Strength

• SBI MF is a part of India’s largest public sector bank SBI
• It has a vast offline presence which is rare these days
• It offers low investment distributorship business model
• Flexibility in choosing your workplace – you can work remotely as well
• Simple and easy empanelment process

Weakness

• The distributors’ network is not as extensive as it should be with so many years in the industry.
• Complete marketing support is not offered
• No Robo advisory platform offered

Opportunities

• The Mutual Fund industry is booming rapidly, with young adults interested in investments.
• The number of mutual fund sellers in the country is only around one lakh in a country of 140 crore people and above.
• Government promotes financial literacy amongst all the people, especially in suburban and rural areas.

Threat

• Limited knowledge about mutual funds and fear of investments
• Fake and fraud people imposing as mutual fund distributors and looting innocent investors
• Market slowdown and recession fears

For a mutual fund distributor, getting the required support from the company is essential.

SBI Distributor get a wide range of Support, which help them establish their business and grow significantly.

SBI MF offers support which includes –

• Acquisition support that helps in pitching to new/ potential clients and acquiring them
• Product training is essential for every distributor as pitching to clients mainly includes discussing the products in detail.
• Advisory support, which helps the distributors pick the suitable funds for their clients
• You will receive RM support, which helps in retaining the clients
• SBI also offers Back office and marketing support.

Check out Business Opportunities with Similar Brands

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Though SBI MF Distributor does not require office space mandatorily, if you choose to work from the office, you can set up one, which must be 200 to 400 square feet depending on the office’s location.

Then you need to employ at least two people. Apart from these, all gadgets and connectivity facilities like mobile, internet, computers and others must be included.

The office premise must be secured with CCTVs, and other facilities and amenities must be there.

The SBI Mutual Fund Advisor Dashboard is one of the best in the industry. It is very sleek but efficient at the same time. It shows you the net sales, gross sales, and total AUM with real-time updates.

Then there are several clients, revenue generated, different graphical representations of your revenues, earnings, and other information.

You can select the date for which you want to check the data and information.

SBI Mutual Fund Agent Login

Every distributor receives SBI Mutual Fund Advisor Login credentials when they get approval as a distributor itself.

You this login details to log in to the partner’s portal. You can visit the SBI Mf distributor site and log in as well.

For using the dashboard, login is mandatory. Without logging in, you cannot use it or keep a check on your business growth.

Check out Business Opportunities with Similar Brands

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IDBI Mutual Fund Distributor

UTI Mutual Fund Distributor

To Become SBI Mutual Fund Distributor, you have to.

• Fill out the form that you can find on the right-hand side of this page
• After submitting the form, you will get a call from the executives of SBI Mutual Fund
• They will assist you with the documents you must upload and the entire empanelment process.
• Before empanelment, you need to take the NISM VA exam. Upon clearing the exam, you can start your empanelment process.
• There will be a KYD process according to the guidelines of SEBI
• Post that, the ARN registration will take place, and your biometrics will be verified
• Once the empanelment process is over, you can start your business with SBI MF as their distributor

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SBI MF Distributor – Conclusion

Becoming an SBI MF Distributor means a lot of opportunities to help investors grow their wealth and increase their income significantly.

As a distributor, the sky is the limit for you, as the more clients you can bring, the more commission you can earn.

FAQs on SBI Mutual Fund Distributorship

Check out various FAQs related to SBI Mutual Fund Distributor.

How many distributors does SBI have?

There are more than 2500 distributors in the SBI Mutual Fund’s network at present.

Is SBI Mutual Fund Agency Safe?

SBI Mutual Fund is registered with SEBI, one of the country’s oldest mutual fund AMC. This makes it one of the safest for both distributors and investors.

What is SBI Mutual Fund Distributor Commission?

The commission that SBI Mutual fund distributors receive varies from 1% to 2% of the total AUM of all their clients.

How much are SBI Distributorship Fees?

The distributorship fee at SBI is Rs. 1 lakh. This is the mandatory fee, a one-time fee that the AMC charges for providing you with the distributors’ rights and opportunities.

Does SBI provide ARN Generation Support?

No, SBI Mutual Fund does not offer ARN generation support at present.

Is SBI a Stock Broker?

No, SBI is not a stockbroker. The SBI Mutual Fund comes under the SBI group.

Is SBI an AMC?

Yes, SBI Mutual Fund is an Asset Management Company which offers mutual fund distributorship to interested and eligible people.

Who is the founder of SBI?

SBI Mutual Fund was founded by Mr Shamsher Singh in 1987. It has its headquarters in Mumbai.

Is SBI registered with SEBI?

Yes, SBI Mutual Fund is registered under SEBI and follows the SEBI regulations and guidelines for mutual fund distribution.

Does SBI Distributor provide Direct MF Investment?

Yes, SBI Mutual Fund distributors offer direct MF investment facilities as well.