Both are meant to assist you in making investing decisions, which may involve choosing mutual fund plans. A mutual fund distributor, as the name implies, is more likely to be focused on mutual fund products, whereas an investment advisor may provide a wider range of goods and services.
Does this imply that a distributor of mutual funds will pitch any mutual fund strategy to investors just for commission? Well, in this aspect, the rules are pretty strict. A distributor of mutual funds would be guilty of "mis-selling" if they offered an investor a mutual fund plan that was not appropriate for them.
When making a recommendation, a distributor of mutual funds must be aware of the investor's circumstances and risk tolerance in order to provide products that would meet their demands. A financial adviser, on the other hand, can examine an investor's assets, liabilities, income, and costs in addition to making product recommendations.
Both are regulated since they are registered entities. While mutual fund distributors register with AMFI, the Organisation of Mutual Funds in India, the trade association for the mutual fund sector, investment advisors register directly with SEBI.