Last updated: 10 October 2026 · By Yashna Bhuwania (ARN-325085)
Quick answer: To become a mutual fund distributor you need NISM Series 5A, or 5D, which also covers SIFs. Add 5D later to distribute Specialised Investment Funds, and 21A for PMS. 10A and 10B are for SEBI-registered investment advisers, a separate fee-only career. 5B is only for a limited "new cadre", and Series 8 is not needed for mutual funds.
Which NISM certificate do you need for each goal?
| I want to… | Certificate | Who registers you | Exam fee | Validity |
|---|---|---|---|---|
| Sell mutual funds | 5A (or 5D) | AMFI (ARN: ₹3,000 + GST) | ₹1,500 | 3 years |
| Sell mutual funds and SIFs | 5D | AMFI (ARN, covers MF and SIF) | ₹3,000 | 3 years |
| Sell PMS | 21A | APMI (APRN: ₹500 + GST for individuals) | ₹1,500 | 3 years |
| Give fee-based advice (RIA) | 10A and 10B | SEBI | ₹3,000 each | 3 years |
| Sell simple schemes as a "new cadre" distributor | 5B | AMFI (limited registration) | ₹1,200 | 3 years |
Exam fees exclude payment gateway charges. Figures from NISM, AMFI and APMI as of October 2026.
Is NISM 5A enough to start a mutual fund business?
Yes. 5A is the standard entry certificate for mutual fund distribution. Once you pass, you apply online to AMFI for your ARN; an individual ARN holder gets an EUIN automatically.
- 100 questions of 1 mark each, 2 hours
- 50% pass mark, no negative marking
- English or Hindi, at a test centre only
- ₹1,500 plus gateway charges, valid 3 years
The full process is in how to become a mutual fund distributor and the ARN registration walkthrough.
Should you take 5D instead of 5A?
5D is the mutual fund plus SIF exam. AMFI says a new applicant who passes 5D is eligible to register for both mutual fund and SIF distribution, so 5D can replace 5A as your first exam. The trade-off is difficulty.
| 5A | 5D | |
|---|---|---|
| Covers | Mutual funds | Mutual funds and SIFs |
| Questions | 100 | 150 |
| Time | 2 hours | 3 hours |
| Pass mark | 50% | 60% |
| Negative marking | None | 10% |
| Fee | ₹1,500 | ₹3,000 |
If you are new to markets, pass 5A first and start working. Take 5D when you have clients with ₹10 lakh or more to invest, since SIFs have a ₹10 lakh minimum investment per investor. Our 5D guide covers the SIF exam in detail.
What is NISM 5B, and does it let you register as an MFD?
5B is the Mutual Fund Foundation exam, built for a "new cadre" of distributors created by a SEBI circular in September 2012: postal agents; retired government and semi-government officials (Class III and above) with 10+ years of service; retired teachers and bank officers with 10+ years of service; and similar persons such as bank correspondents, as notified by AMFI or AMCs.
New cadre distributors can sell only "simple and performing" schemes, so 5B leads to a limited registration, not a full ARN. If you fall in one of these groups, check the current process with AMFI before booking 5B. For everyone else, 5A is the right exam.
5B has 50 questions in 2 hours, a 50% pass mark, no negative marking, and costs ₹1,200.
What about 5C? NISM discontinued 5C (Mutual Fund Distributors Level 2) from 1 April 2023.
When do you need NISM 21A?
To distribute Portfolio Management Services. PMS has a ₹50 lakh minimum investment, so this is for MFDs with HNI clients. Passing 21A is half the step: under a SEBI circular of 2 May 2024, anyone distributing PMS must also register with APMI (the Association of Portfolio Managers in India) and get an APRN.
| Item | Detail |
|---|---|
| Exam | 100 marks, 2 hours, 60% pass, 10% negative marking |
| Exam fee | ₹1,500 |
| APMI fee (individual) | ₹500 + 18% GST |
| APRN validity | Until your 21A certificate expires |
Are 10A and 10B still required to become an RIA?
Yes. An individual investment adviser, or the principal officer of a firm, must pass both 10A (Level 1) and 10B (Level 2).
| 10A | 10B | |
|---|---|---|
| Questions | 135 (incl. 45 caselet) | 120 (incl. 30 caselet) |
| Marks | 150 | 150 |
| Time | 3 hours | 3 hours |
| Pass mark | 60% | 60% |
| Negative marking | 25% | 25% |
| Fee | ₹3,000 | ₹3,000 |
Two recent changes:
- Renewal: NISM now runs 10C, a renewal exam for holders of valid 10A and 10B certificates: ₹2,500, 50 questions in 60 minutes, after about 2–3 hours of recorded training. It does not replace 10A and 10B for new advisers.
- Eligibility: SEBI's December 2024 amendment set the education rule at a graduate degree in any subject, plus NISM certification. The old experience alternative was removed.
An RIA is a fee-only career with different rules. See MFD vs RIA vs insurance agent.
Do you need NISM Series 8 to sell mutual funds?
No. Series 8 is the Equity Derivatives exam for stockbroker staff who deal in futures and options. It plays no part in ARN registration.
Which path should you follow as you grow?
| Stage | Certificates | What it unlocks |
|---|---|---|
| New MFD | 5A | Mutual funds, regular plans |
| Growing MFD | 5A + 5D (or 5D alone) | Mutual funds and SIFs |
| HNI-focused MFD | + 21A and APMI registration | PMS |
| Fee-only adviser | 10A + 10B, SEBI registration | Advice for a fee; no distribution |
Each certificate is valid for 3 years. For 5A, renewal is through a 1-day classroom CPE or the online eCPE (₹2,500), done within 12 months before expiry. Your ARN renewal depends on a valid certificate.
Can you hold both an ARN and an RIA registration?
Not as an individual. SEBI's rules say an individual investment adviser cannot provide distribution services, and their family (spouse, children and parents) cannot distribute to the adviser's clients. Pick one model.
Where does Dhan Saarthi fit?
If you are starting with 5A, Dhan Saarthi is publishing a free 5A mock test. After your ARN, you can distribute mutual funds and SIFs online through Dhan Saarthi and keep 90% of the trail. PMS and AIF are distributed offline. Book a demo.
Sources
- NISM certifications list and fees
- NISM 5B: Mutual Fund Foundation
- NISM 10A: Investment Adviser (Level 1)
- NISM 10B: Investment Adviser (Level 2)
- NISM 10C: Investment Adviser renewal exam
- SEBI (Investment Advisers) Regulations, 2013, as amended to 25 Nov 2025
- APMI: Master Document for Distributor Registration
- AMFI (ARN fees and 5D eligibility)
Mutual fund investments are subject to market risks, read all scheme related documents carefully. Distribution services are offered through Khazana Fintech Pvt. Ltd. (AMFI ARN – 325085). Fees and exam patterns as of October 2026.
