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What Is ARN Number in Mutual Funds?

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What is ARN Number in Mutual Funds?

Last Updated on Sep 8, 2022 by

Mutual funds are popular investments which can be bought easily. But mutual funds can be sold only by qualified experts with an official ARN number. This article teaches about ARN number in mutual funds, eligibility, benefits and how to get one. 

What is the ARN number in mutual funds? 

ARN stands for Application Reference Number. It is a unique number provided to the authorised mutual fund expert or distributor. According to the Association of Mutual Funds in India (AMFI), it is mandatory for all intermediaries involved in selling or marketing mutual funds to clear a certification from the National Institute of Securities Markets (NISM). Once they clear the exam, they must register with AMFI to get the ARN code. In simple terms, the ARN code is the verification provided by the AMFI for genuine and authenticated mutual fund experts. 

The ARN code is an alphanumeric code which has 6 components.      


Example, AA 08 02 22 123456 8. 

AA – Alphabetical code

08 – State code

02 – Month

22 – Year

123456 – Six digits system-generated code

8 – Checksum digit

Who can get a mutual fund ARN number? 

ARN number is provided only to specific individuals or entities as listed below.   

  • Individual mutual fund brokers, agents or other types of intermediaries who cleared the NISM Mutual Fund Distribution Certification Test. 
  • In the case of senior citizens, the individuals who attended the Continuing Professional Education (CPE) can get an ARN number. 
  • Corporates selling mutual fund products or marketing must register with AMFI and get the ARN code. 

All the ARN code applicants must agree to the essential guidelines and code of conduct mentioned in the application form. 

How to get the ARN code?

The individuals who get certified from the NISM can get the ARN code. After getting the certificate, the applicant can apply for an ARN number online or offline. On behalf of AMFI, Computer Age Management Services Pvt. Ltd. (CAMS) handles the processing of ARN. Here are the steps to follow to get an ARN number online or offline.

Steps to get mutual fund ARN number- online 

  1. Visit the AMFI website and sign up. 
  2. The applicants must fill out the ARN application form along with Know Your Distributor (KYD) application form.
  3. Once the forms are duly filled, the applicant can make the required payment to get the ARN code. 
  4. The forms will be verified, and the applicant will get a letter of registration and a photo ID via email. 

Steps to get mutual funds ARN number- offline

  1. Visit the nearby CAMS office and get the application form 
  2. Fill out the application form with the required information and submit it at the office. 
  3. Pay the ARN code fees. 
  4. The applicant will get the letter of registration with a photo ID at their registered address. 

Documents required to get ARN code 

The documents required while applying for the mutual funds ARN are, 

  • Self-attested copy of NISM certificate or CPE (Continuing Professional Education) certificate. 
  • Identify proof like an Aadhaar card.
  • Passport-sized photos of the applicant.
  • Latest bank account statement.

Mutual funds ARN renewal 

The NISM certificate is valid for 3 yrs. The ARN holders can apply for the renewal of their ARN code when the expiry date is 6 months or less. The process of renewing the ARN is simple. ARN holders must visit the CAMS website and fill out the renewal application form. Submit the form with the required documents and follow the instructions afterwards. 

Mutual funds ARN registration and renewal fees 

The registration fee for ARN for individuals is Rs. 1,500 (excluding GST). The fee differs for banks, proprietary firms, partnership firms, etc. The renewal fee for ARN for individuals is Rs. 750 (excluding GST). 

Benefits of mutual fund ARN code

  • It helps identify the mutual fund advisors, distributors, brokers and agents. 
  • Easy to track the assets accumulated by the intermediary.
  • As the ARN is SEBI regulated, the investors are protected from fraudsters.  

FAQs

1. Why should you check the ARN code?

Usually, AMFI and SEBI take several measures for the safety of investors. ARN number is one such safety measure for the investors, which will help identify the genuine mutual fund expert or distributor. 

2. Can we get an ARN code with any certification? 

No. It is mandatory to have a NISM passing certificate / CPE Certificate for every individual applying for mutual funds ARN code.

3. Can a mutual fund expert get more than one ARN number?  

No. Any mutual fund expert or distributor is provided only one ARN code.

4. Where can I get the ARM registration form?

You can get the ARM registration form online on the AMFI website or by visiting the nearby CAMS office. 

5. What are the details required while registering for ARN?  

While registering online on the AMFI India website, the applicant must have their PAN card and active mobile number handy.

6. What is the minimum age requirement for mutual funds ARN? 

The minimum age required to register an individual for mutual funds ARN code is 18 yrs.

7. What is the validity of ARN in corporate entities? 

The ARN in the corporate entities is valid for 3 yrs from the date provided on the letter of registration. 

8. What is the validity of the NISM certificate? 

The National Institute of Securities Markets (NISM) certificate is valid for 3 yrs. 

9. What is the validity of the ARN code provided to individuals?

The ARN code validity is mentioned on the NISM passing certificate. However, the NISM certificate is valid for 3 yrs.

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