The NISM Series VA:Mutual Fund Distributors Certification Examination aims at creating a common minimum expertise standard for all persons who are involved in trading equity derivatives in a recognized stock exchange.
Exam Pattern NISM Series VA:Mutual Fund Distributors
|
Fees |
Rs.1500 |
|
Test Duration (in Minutes) |
120 |
|
No. of Questions |
100 |
|
Maximum Marks |
100 |
|
Pass Marks*(%) |
50 |
|
Certificate Validity(in years)# |
3 |
Assessment Structure:
- The Mutual Fund Distributors examination consists of 100 questions of 1 mark each and should be completed in 2 hours. The passing score for the examination is 50%. There shall be no negative marking.
- No negative marks for incorrect answers.
Syllabus NISM Series VA:Mutual Fund Distributors
I. INVESTMENT LANDSCAPE
- Investors and their Financial Goals
- Savings or Investments
- Different Asset Classes
- Investment Risks
- Risk Measures and Management Strategies
- Behavioral Biases in Investment Decision Making
- Risk Profiling
- Understanding Asset Allocation
- Do-it-yourself versus Taking Professional Help
II. CONCEPT AND ROLE OF A MUTUAL FUND
- Concept of a Mutual fund
- Classification of Mutual Funds
- Growth of the mutual fund industry in India
III. LEGAL STRUCTURE OF MUTUAL FUNDS IN INDIA
- Structure of Mutual Funds in India
- Key Constituents of a Mutual Fund
- Organization Structure of Asset Management Company
- Role and Support function of Service Providers
- Role and Function of AMFI
IV. LEGAL AND REGULATORY FRAMEWORK
- Role of Regulators in India
- Role of Securities and Exchange Board of India
- Due Diligence Process by AMCs for Distributors of Mutual Funds
- Investor Grievance Redress Mechanism
- AMFI Code of Conduct for Intermediaries
V. SCHEME RELATED INFORMATION
- Mandatory Documents
- Non-Mandatory Disclosures
VI. FUND DISTRIBUTION AND CHANNEL MANAGEMENT PRACTICES
- The role and importance of mutual fund distributors
- Different kinds of mutual fund distributors
- Modes of distribution
- Pre-requisites to become Distributor of a Mutual Fund
- Revenue for a mutual fund distributor
- Commission Disclosure mandated by SEBI
- Due Diligence Process by AMCs for Distributors of Mutual Funds
- Difference between distributors and Investment Advisors
- Nomination facilities to Agents/Distributors and Payment of Commission to Nominee
- Change of distributor
VII. NET ASSET VALUE, TOTAL EXPENSE RATIO AND PRICING OF UNITS
- Computation of Net Assets of Mutual Fund Scheme and NAV
- Concept of Entry and Exit Load and its impact on NAV
- NAV, Total expense ratio and pricing of units for the Segregated Portfolio
VIII. TAXATION
- Applicability of taxes in respect of mutual funds
- Capital Gains
- Dividend income
- Stamp Duty on Mutual Fund Units
- Setting off of Capital Gains and Losses under Income Tax Act
- Securities Transaction Tax
- Tax benefit under Section 80C of the Income Tax Act
- Tax Deducted at Source
- Applicability of GST
IX. INVESTOR SERVICES
- The NFO process
- New Fund Offer Price/On-going Offer Price for subscription
- Investment Plans and Services
- Allotment of Units to the Investor
- Account statements for investments
- Mutual Fund Investors
- Filling the Application Form for Mutual Funds
- Financial Transactions with Mutual Funds
- Cut-off Time and Time Stamping
- KYC Requirements for Mutual Fund Investors
- Systematic Transactions
- Operational aspects of Systematic Transactions
- Non-Financial Transactions in Mutual Funds
- Change in Status of Special Investor Categories
- Investor transactions – turnaround times
X. RISK, RETURN AND PERFORMANCE OF FUNDS
- General and Specific Risk Factors
- Factors that affect mutual fund performance
- Drivers of Returns and Risk in a Scheme
- Measures of Returns
- SEBI Norms regarding Representation of Returns by Mutual Funds in India
- Risks in fund investing with a focus on investors
- Measures of Risk
- Certain Provisions with respect to Credit risk
XI. MUTUAL FUND SCHEME PERFORMANCE
- Benchmarks and Performance
- Return Index or Total Return Index
- Basis of Choosing an appropriate performance benchmark
- Benchmarks for equity schemes
- Benchmarks for Debt Schemes
- Benchmarks for Other Schemes
- Quantitative Measures of Fund Manager Performance
- Tracking Error
- Scheme Performance Disclosure
XII. MUTUAL FUND SCHEME SELECTION
- Scheme Selection based on Investor needs, preference and risk-profile
- Risk levels in mutual fund schemes
- Scheme Selection based on investment strategy of mutual funds
- Selection of Mutual Fund scheme offered by different AMCs or within the scheme category
- Selecting options in mutual fund schemes
- 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
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