Curriculum (Mutual Fund Distributors)
I. INVESTMENT LANDSCAPE
A. Investors and their Financial Goals
B. Savings or Investments?
C. Different Asset Classes
D. Investment Risks
E. Risk Measures and Management Strategies
F. Behavioral Biases in Investment Decision Making
G. Risk Profiling
H. Understanding Asset Allocation
I. Do-it-yourself versus Taking Professional Help
II. CONCEPT AND ROLE OF A MUTUAL FUND
A. Concept of a Mutual fund
B. Classification of Mutual Funds
C. Growth of the mutual fund industry in India
III. LEGAL STRUCTURE OF MUTUAL FUNDS IN INDIA
A. Structure of Mutual Funds in India
B. Key Constituents of a Mutual Fund
C. Organization Structure of Asset Management Company
D. Role and Support function of Service Providers
E. Role and Function of AMFI
IV. LEGAL AND REGULATORY FRAMEWORK
A. Role of Regulators in India
B. Role of Securities and Exchange Board of India
C. Due Diligence Process by AMCs for Distributors of Mutual Funds
D. Investor Grievance Redress Mechanism
E. AMFI Code of Conduct for Intermediaries
V. SCHEME RELATED INFORMATION
A. Mandatory Documents
B. Non-Mandatory Disclosures
VI. FUND DISTRIBUTION AND CHANNEL MANAGEMENT PRACTICES
A. The role and importance of mutual fund distributors
B. Different kinds of mutual fund distributors
C. Modes of distribution
D. Pre-requisites to become Distributor of a Mutual Fund
E. Revenue for a mutual fund distributor
F. Commission Disclosure mandated by SEBI
G. Due Diligence Process by AMCs for Distributors of Mutual Funds
H. Difference between distributors and Investment Advisors
I. Nomination facilities to Agents/Distributors and Payment of Commission to Nominee
J. Change of distributor
VII. NET ASSET VALUE, TOTAL EXPENSE RATIO AND PRICING OF UNITS
A. Computation of Net Assets of Mutual Fund Scheme and NAV
B. Concept of Entry and Exit Load and its impact on NAV
C. NAV, Total expense ratio and pricing of units for the Segregated Portfolio
VIII. TAXATION
A. Applicability of taxes in respect of mutual funds
B. Capital Gains
C. Dividend income
D. Stamp Duty on Mutual Fund Units
E. Setting off of Capital Gains and Losses under Income Tax Act
F. Securities Transaction Tax
G. Tax benefit under Section 80C of the Income Tax Act
H. Tax Deducted at Source
I. Applicability of GST
IX. INVESTOR SERVICES
A. The NFO process
B. New Fund Offer Price/On-going Offer Price for subscription
C. Investment Plans and Services
D. Allotment of Units to the Investor
E. Account statements for investments
F. Mutual Fund Investors
G. Filling the Application Form for Mutual Funds
H. Financial Transactions with Mutual Funds
I. Cut-off Time and Time Stamping
J. KYC Requirements for Mutual Fund Investors
K. Systematic Transactions
L. Operational aspects of Systematic Transactions
M. Non-Financial Transactions in Mutual Funds
N. Change in Status of Special Investor Categories
O. Investor transactions – turnaround times
X. RISK, RETURN AND PERFORMANCE OF FUNDS
A. General and Specific Risk Factors
B. Factors that affect mutual fund performance
C. Drivers of Returns and Risk in a Scheme
D. Measures of Returns
E. SEBI Norms regarding Representation of Returns by Mutual Funds in India
F. Risks in fund investing with a focus on investors
G. Measures of Risk
H. Certain Provisions with respect to Credit risk
XI. MUTUAL FUND SCHEME PERFORMANCE
A. Benchmarks and Performance
B. Price Return Index or Total Return Index
C. Basis of Choosing an appropriate performance benchmark
D. Benchmarks for equity schemes
E. Benchmarks for Debt Schemes
F. Benchmarks for Other Schemes
G. Quantitative Measures of Fund Manager Performance
H. Tracking Error
I. Scheme Performance Disclosure
XII. MUTUAL FUND SCHEME SELECTION
A. Scheme Selection based on Investor needs, preference and risk-profile
B. Risk levels in mutual fund schemes
C. Scheme Selection based on investment strategy of mutual funds
D. Selection of Mutual Fund scheme offered by different AMCs or within the scheme category
E. Selecting options in mutual fund schemes
F. Do’s and Don’ts while selecting mutual fund schemes
Appendix 1: Fifth Schedule of Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 [Regulations 18(22), 25(16), 68(h)]
Appendix 2: AMFI Code of Ethics
Appendix 3: AMFI’s Code of Conduct for Intermediaries of Mutual Funds
Appendix 4: Format of Scheme Information Document (SID)
Appendix 5: Format of Statement of Additional Information (SAI)
Appendix 6: Format of Key Information Memorandum
Appendix 7: KYC Form for Individual
Appendix 8: KYC Form for Non-Individuals
Appendix 9: KYC Details Change Form for Individuals
Appendix 10: KYC Details Change Form for Non-Individuals
Appendix 11: Process for Aadhaar e-KYC of investors (resident) in the securities markets
Appendix 12: Procedure for Transmission of Units on Death of a Unitholder
Appendix 13 – Easy guide for New Distributors
Appendix 14 – Indian and Global mutual fund industry.
Appendix 15 – Additional knowledge resources
