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

 I. Investment Landscape

  1. Understand the parameters of the Indian Economy Describe about Investors and their Financial Goals
  2. Understand Savings and Investment
  3. Discuss Different Asset Classes
  4. Understand the classification of Investment Risks
  5. Explain Risk Measure and Management Strategies
  6. Understand Behavioral Biases in Investment Decision Making
  7. Understand Risk Profiling
  8. Explain the Asset Allocation
  9. Comparison between the two approaches - Do-it-yourself and Taking Professional Help

II. Concept & Role of a Mutual Fund 

  1. Explain the concept of mutual fund
  2. Understand the classifications of mutual funds
  3. Describe the Growth of the mutual fund industry in India

III. Legal Structure of Mutual Funds in India

  1. Describe the structure of mutual funds in India
  2. Understand the key constituents of a Mutual Funds
  3. Understand the organisation structure of Asset Management Company
  4. Understand the role and support functions of service providers of mutual funds
  5. Explain the Role and Function of AMFI

IV. Legal and Regulatory Framework

  1. Describe role of regulators in India
  2. Discuss role of Securities and Exchange Board of India
  3. Know the Due Diligence process followed by AMCs for distributors of mutual funds
  4. Explain Investor Grievance and Redressal standards (Explain about SCORES)
  5. Understand AMFI Code of conduct for Intermediaries

V. Scheme Related Information

  1. Understanding the Mandatory Documents and their purpose, objective and significance
  2. Explain the Non-Mandatory Disclosures

VI. Fund Distribution and Channel Management Practices

  1. Explain the role and importance of mutual fund distributors
  2. Understand the classification of mutual fund distributors
  3. Explain the modes of distribution
  4. Understand the Pre-requisites to become Distributor of the Mutual Fund
  5. Explain Revenue for a mutual fund distributor
  6. Know the Commission Disclosure mandated by SEBI
  7. Explain the Due Diligence Process by AMCs for Distributors of Mutual Funds
  8. Discuss Nomination facilities to Agents / Distributors and Payment of Commission to Nominee
  9. Explain about change of distributor

VII. Net Asset Value, Total Expense Ratio and Pricing of Units

  1. Discuss the Fair Valuation Principles
  2. Compute net assets of a mutual fund scheme and NAV
  3. Explain about Dividends & Distributable Reserves
  4. Know about the Concept of Entry and Exit Load and its impact on NAV
  5. Know about the Key Accounting and Reporting Requirements applicable to mutual funds
  6. Know about the NAV, Total expense ratio and pricing of units for the Segregated Portfolio

VIII. Taxation

  1. Understand Applicability of various taxes in respect of mutual funds
  2. Understand about Capital gains, Capital gains (Long term & Short term) tax and Indexation.
  3. Understand about the Dividend Income and Dividend Income tax
  4. Understand the difference between dividend distribution tax and capital gains tax
  5. Understand the basics of Setting off Gains and Losses under Income Tax Act
  6. Understand about Securities Transaction Tax
  7. Understand about Tax benefit under Section 80C of the Income Tax Act for investment pertaining to mutual funds
  8. Understand about Tax Deducted at Source (TDS) in mutual funds
  9. Understand Applicability of GST in mutual funds

IX. Investor Services

  1. Describe the NFO Process
  2. Explain about the New Fund Offer Price /On-going price for subscription
  3. Discuss Different types of investment plans and options
  4. Explain how the mutual fund units are allotted to the investor
  5. Describe the content and periodicity of Statement of Accounts for investments
  6. Describe different types of Mutual Fund Investors
  7. Explain how to fill in the application form for mutual funds
  8. Describe the financial transactions with mutual funds (Purchase, Redemption and Switches)
  9. Explain Cut-off time and Time Stamping
  10. Describe the KYC requirement for mutual fund investors
  11. Explain the different types of systematic transactions
  12. Explain operational aspects of systematic transactions
  13. Explain Non – Financial Transactions in Mutual Funds
  14. Discuss change in Status of Special Investor Categories
  15. Explain Investor Transactions – turnaround times

 

 X. Risk, Return and Performance of funds

  1. Understand the General and Specific Risk Factors
  2. Explain the Factors that affect mutual fund performance
  3. Describe Drivers of Returns and Risk in mutual fund Scheme
  4. Understand the Measures of Returns
  5. Know about the SEBI norms regarding representation of returns by mutual funds in India
  6. Explain risks in fund investing with a focus on investors
  7. Understand the Measures of Risk
  8. Explain certain provisions with respect to Credit risk

 

XI. Mutual Fund Scheme Performance

  1. Explain the concept of Benchmarks
  2. Compare Price Return Index and Total Return Index
  3. Identify the Basis of choosing an appropriate performance benchmark
  4. Describe the use of market benchmarks to evaluate Equity Fund Performance
  5. Describe the use of market benchmarks to evaluate Debt Fund Performance
  6. Describe the use of market benchmarks to evaluate Other Schemes
  7. Explain Quantitative Measures of Fund Manager Performance
  8. Define Tracking Error
  9. Understand the different Sources for disclosure of scheme performance (Scheme documents, AMFI and AMC website and Fund Fact Sheet)

 

XII. Mutual Fund Scheme Selection

  1. Explain Scheme Selection based on Investor needs, preferences and risk-profile
  2. Explain Risk Levels in mutual fund schemes
  3. Explain Scheme Selection based on investment strategy of mutual funds
  4. Explain Selection of Mutual Fund scheme offered by different AMCs or within the scheme category
  5. Know about selecting options in mutual fund schemes
  6. Know about Do’s and Don’ts while selecting mutual fund schemes