Shashi Kant Bahl
You can change your mutual fund distributor at any time by submitting a change-of-distributor request for each folio, usually with your new distributor’s help. You don’t need to sell your units, you don’t pay tax or exit load, and you don’t need an NOC (no-objection certificate) from your old distributor. Your units, NAV and returns stay exactly as they are; only the distributor code on your folio changes.
Signs It's Time to Change Mutual Fund Distributor
A good distributor makes investing easier. Consider a change if you notice any of these:
- Calls and messages go unanswered. You chase callbacks that never come, or wait days for a simple reply.
- You struggle to get basic documents. Getting your account statement or capital gains statement shouldn’t take several calls.
- You hear from them only when they want a new investment. There’s no regular update on how your investments are doing.
- There’s only one point of contact. If that person is unavailable, nothing moves.
- Your distributor has retired, closed the business or passed away. Your investments still need someone to service them.
If you recognise one or two of these, raise them with your distributor first. If nothing improves, switching is simple.
How to Check Who Your Current Distributor Is
Many investors aren’t sure who their distributor is, especially for older or inherited investments. To find out:
- Download your Consolidated Account Statement (CAS) from CAMS, KFintech or MFCentral. It shows the distributor name and ARN for each folio.
- Check any account statement from the fund house. The distributor’s ARN is printed alongside each scheme.
- Look for the word “Direct” in the scheme name. If you see it, that investment has no distributor.
You may find that different folios are with different distributors. You can move all of them to one distributor, or only some of them.
What Happens to Your Investments When You Switch
Changing your distributor is an administrative change, not a transaction.
- Your units stay invested. Nothing is sold or bought.
- There’s no capital gains tax, because there’s no redemption.
- There’s no exit load, for the same reason.
- You stay in the same fund and the same plan. A regular plan remains a regular plan.
- The switch is free. There’s no charge from the fund house or the distributor.
Change Your Distributor or Switch to a Direct Plan?
Some investors unhappy with their distributor consider moving to a direct plan instead. The two are different:
| Change of distributor | Switch to direct plan | |
|---|---|---|
| What changes | Only the distributor on your folio | Your units move from the regular plan to the direct plan |
| Sale of units | No | Yes, it's treated as a redemption |
| Tax and exit load | None | Capital gains tax and exit load may apply |
| Who services your investments | Your new distributor | You manage everything yourself |
| Expense ratio | Same as before (regular plan) | Lower (direct plan) |
Step-by-Step Process to Change Your Mutual Fund Distributor
1. Choose your new distributor.
Check that their ARN (AMFI Registration Number) is active on AMFI’s website. Ask how they handle service requests, statements and queries, and who your point of contact will be.
2. Collect your folio details.
List every fund and folio number you hold. Your CAS shows all your folios in one place.
3. Check your KYC.
KYC belongs to you, not your distributor, so if it’s already complete you don’t need to redo it. Make sure your mobile number and email are up to date, since requests are often verified by OTP.
4. Sign the change-of-distributor request.
Your new distributor prepares a request for each folio, with their ARN and EUIN (employee code). You sign it, and it’s submitted to the fund house or its registrar (CAMS or KFintech). Depending on the distributor, this can be done on paper or digitally.
5. Track the confirmation.
The fund house processes the request and updates the distributor code on your folio. You’ll usually receive a confirmation by email or SMS. Your next account statement will show the new distributor.
6. Check your ongoing SIPs.
Ask your new distributor whether active SIPs in the same folio are covered by the request or need a separate one, so that future instalments are linked to the new distributor.
What You Need to Change Your Distributor
- PAN
- Folio numbers for each fund (from your CAS)
- Registered mobile number and email, for OTP verification
- Your new distributor’s ARN and EUIN, which they provide
How Long Does It Take?
Most requests are processed within a few working days to a couple of weeks after submission, depending on the fund house. Your investments stay invested and continue to be tracked throughout.
Change Your Distributor to MutualFundWala
If you’d like a distributor who answers your calls, MutualFundWala can take over the servicing of your existing mutual funds. We prepare the change-of-distributor requests for all your folios, track them until they’re confirmed, and give you one relationship manager plus the MutualFundWala app to see all your funds in one place.
MutualFundWala is an AMFI-registered mutual fund distributor (ARN 275889). We earn commission from fund houses on regular plans.
Are you dissatisfied with your Mutual Fund Distributor?
Switch to MutualFundWala
FAQs
01. What is change of mutual fund distributor?
Ans: It means moving the servicing of your existing mutual fund investments from one distributor to another. Only the distributor code on your folio changes; your units stay invested.
02. Can I change my mutual fund distributor without selling my units?
Ans: Yes. A change of distributor doesn’t involve any redemption, so your units, NAV and returns stay the same, with no tax or exit load.
03. Do I need an NOC from my old distributor?
Ans: No. Fund houses must act on your request to change distributors without asking for an NOC from your existing distributor.
04. How do I change my mutual fund distributor online?
Ans: Many distributors let you sign the change-of-distributor request digitally. Your new distributor prepares the request for each folio; you approve it, and it’s submitted to the fund house or registrar.
05. What is ARN transfer?
Ans: ARN transfer is the common term for changing the distributor code (ARN) linked to your mutual fund folio. When you change distributors, your folios move from the old ARN to the new distributor’s ARN.
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About the Author
Mr Shashi Kant Bahl
Mr. Shashi Kant Bahl is a mutual fund professional with nearly 20 years of experience in the financial services industry. Since 2005, he has helped over 10,000 investors manage their mutual fund investments and build long-term wealth. His firm currently manages assets of over ₹734 crore (AUM).
Disclaimer: Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.
