NISM-Series-V-A: Mutual Fund Distributors Certification Examination


I. Concept and Role of a Mutual Fund
A. Mutual fund and its functions
B. Investment objectives of different kinds of mutual fund products
C. Concept of Marking To Market
D. Concept of unit Capital, Assets under Management, Fund Running Expenses and Net Asset Value
E. Advantages and limitations of mutual fund
F. Concept of closed end funds, open ended funds and interval funds
G. Concept of actively managed funds and passive funds
H. Categorization of mutual fund schemes
I. Developments in the Mutual Fund Industry over the years

II. Fund Structure and Constituents
A. Structure of mutual funds in India
B. Role of the Sponsor, Trustee and Asset Management Company (AMC)
C. Regulatory provisions with respect to Sponsor, Trustee and AMC
D. Role and Functions of Service Providers of mutual funds
E. Payment Aggregators

III. Legal and Regulatory Environment
A. Role of SEBI in regulating mutual funds
B. Concept of a Self Regulator
C. Functions of AMFI
D. AMFI Code of Ethics (ACE) and AMFI Guidelines and Norms for Intermediaries (AGNI)
E. Due Diligence process for its distributors
F. Rights and obligations of investors in a mutual fund

IV. Offer Document
A. New Fund Offer
B. Statement of Additional Information (SAI) and Scheme Information Document (SID)
C. Key Information Memorandum (KIM)

V. Fund Distribution and Channel Management Practices
A. Traditional distribution channels
B. Alternate Distribution channels of mutual funds
C. Pre-requisites to be fulfilled to become a distributor of a mutual fund
D. Commissions and Transaction Charges for mutual fund distributor
E. Regulatory requirements governing payment of commissions to distributors
F. Initial or Upfront and Trail Commissions
G. SEBI Advertising Code for Mutual Funds

VI. Accounting, Valuation and Taxation
A. Net assets of a mutual fund scheme and NAV
B. Mark to Market as a valuation metric
C. Total Expenses of Mutual Funds
D. Accounting and reporting requirements applicable to mutual funds
E. Valuation process
F. Tax provisions applicable to a mutual fund

VII. Investor Services
A. Types of Investors in mutual funds
B. KYC Compliance Process
C. KYC Registration Agencies
D. Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS)
E. Payment mechanisms for purchasing and redemption of mutual funds units
F. Allotment of mutual fund units
G. Time Stamping and Cut-off time
H. Mutual Fund transactions through stock exchanges
I. Growth, Dividend, and dividend re-investment options in a mutual fund.
J. Types of systematic transactions
K. Statement of Accounts
L. Nomination, pledge/ lien of units, change in folio details, transmission of units
M. Other investor services and facilities offered by mutual funds.

VIII. Risk, return and performance of funds
A. Performance of equity funds
B. Performance of debt funds, gold funds and real estate
C. Kinds of returns, such as simple, annualized and compounded returns.
D. SEBI norms regarding return representation of mutual funds in India
E. Risk in an equity fund, debt fund and other funds (hybrid, gold and real estate)
F. Risk measures of mutual funds
G. Benchmarking performance
H. Fund manager performance
IX. Mutual Fund Scheme Selection
A. Steps in selecting the funds
B. Concept and selection of mutual fund scheme
C. Sources of data to track mutual fund performance
X. Selecting the Right Investment Products for Investors
A. Savings and Investment
B. Inflation Risk
C. Concept and features of physical and financial assets

XI. Helping Investors with Financial Planning
A. Concept of financial planning
B. Financial planning needs to the life cycle stage of the investor
C. Stages in the wealth cycle model of investor

XII. Recommending Model Portfolios and Financial Plans
A. Risk profiling tools
B. Asset allocation
C. Model portfolios for investors
D. Behavioral biases in investment decision making


Partner with Us

If you are an Educational Institution and want us to schedule a seminar on "How to Build a Career in Securities Markets" at your campus or deliver NISM Certification Examinations at your doorstep,

Click Here to Know More..

Go to top