Do You Need Series 7 to Sell Mutual Funds?

Do You Need Series 7 to Sell Mutual Funds?

No, you do not necessarily need the Series 7 license to sell mutual funds, but it depends on the type of activities you will be conducting.

1. Selling Mutual Funds Only (No Securities)

• If you are only selling mutual funds, you can typically obtain a Series 6 license, also known as the Investment Company and Variable Contracts Products Representative qualification. This license allows you to sell mutual funds, variable annuities, and other similar products.
• The Series 6 is more limited in scope than the Series 7, which allows a broader range of activities, including the sale of individual stocks, bonds, and options.

2. Selling a Broader Range of Securities (Stocks, Bonds, Options, etc.)

• If you want to sell mutual funds as well as stocks, bonds, options, and other securities, you will need the Series 7 license. The Series 7 qualification, also known as the General Securities Representative license, is a broader qualification that covers various types of investment products.

3. Series 7 and Mutual Funds

• If you hold the Series 7 license, you are authorized to sell mutual funds in addition to other types of securities.
• The Series 7 is more comprehensive, covering a wider range of financial products and services, while the Series 6 focuses specifically on mutual funds and similar products.

Conclusion:

• Series 6 is sufficient for selling mutual funds only.
• Series 7 is required if you plan to sell a broader range of securities, including mutual funds, stocks, bonds, and options.

If you only plan to deal with mutual funds, the Series 6 might be the right option for you. However, if you’re considering a broader career in securities sales, obtaining the Series 7 would be beneficial.