NISM-Series-V-A: Mutual Fund Distributors Certification Examination (NISM Exam) is organized by National Institute of Securities Market. Only after clearing the NISM Certification exam, the prospect gets the ARN Number and becomes a Mutual Fund Agent. The NISM Exam seeks to construct a common minimum knowledge standard for all candidates involved in Mutual Funds sales and distribution, including the Individual Mutual Fund Distributors, Employees of organizations engaged in sales and distribution of Mutual Funds and the Employees of Asset Management Companies (AMC), especially people engaged in Mutual Funds sales and distribution. The certification intends to augment the sales quality, distribution, and related support services in the industry.
Key Highlights
1 . NISM Certifications Eligibility Criteria
2 . Mode to Appear in the NISM Exam
3. How Much NISM Certification Fees to be submitted?
4 . What is the Validity of NISM Certificate?
5 . NISM Certification Exam Pattern
6 . NISM Series VA – Name of Module
7 . How to Enroll for the NISM Exam?
8 . NISM Certifications Exam Syllabus
9 . NISM Exam Study Material
10 . Frequently Asked Questions (FAQs)
There will be 100 questions in the examination
Each question will be of 1 mark (Maximum marks 100)
To qualify the examination it is necessary to score at least 50% marks
No negative marking will be there
How to Enroll for The NISM Exam?
For completing the NISM certification registration, Login in to NISM and click on ‘New Account’ option
NISM Registration- Complete your profile. A scanned copy of Passport size photo, Aadhar Card and PAN Card would be needed in JPG format.
The profile gets approved within 3 days after the NISM exam registration and verification is done.
Login to book the NISM Series V-A exam ( Available in Hindi & English Language)
Booking involves – Selection of city, time slot & payment of Rs.1,500
In location select online if you want to give exam from home online.
The workbook will be available in the NISM portal. Download and study for the exam.
Once your clear the exam you have to apply for ARN
NISM Exam Syllabus:
In order to qualify the NISM Exam, it is necessary for the personnel to understand the whole NISM Examination Syllabus. Following are the topics included in the NISM Curriculum.
I. Investment Landscape
Understand the parameters of the Indian Economy: Describe about Investors and their Financial Goals
Understand Savings and Investment
Discuss Different Asset Classes
Understand the Classification of Investment Risks
Explain Risk Measure and Management Strategies
Understand Behavioral Biases in Investment Decision Making
Understand Risk Profiling
Explain the Asset Allocation
Comparison between the two approaches – Do-it-yourself and Taking Professional Help
II. Concept & Role of a Mutual Fund
Explain the Concept of Mutual Fund
Understand the Classifications of Mutual Funds
Describe the Growth of the Mutual Fund Industry in India
III. Legal Structure of Mutual Funds in India
Describe the Structure of Mutual Funds in India
Understand the Key Constituents of a Mutual Fund
Understand the Organisation Structure of Asset Management Company
Understand the Role and Support Functions of Service Providers of Mutual Funds
Explain the Role and Function of AMFI
IV. Legal and Regulatory Framework
Describe Role of Regulators in India
Discuss Role of Securities and Exchange Board of India
Know the Due Diligence Process Followed by AMCs for Distributors of Mutual Funds
Explain Investor Grievance and Redressal Standards (Explain about SCORES)
Understand AMFI Code of Conduct for Intermediaries
V. Scheme Related Information
Understanding the Mandatory Documents and their Purpose, Objective and Significance
Explain the Non-Mandatory Disclosures
VI. Fund Distribution and Channel Management Practices
Explain the Role and Importance of Mutual Fund Distributors
Understand the Classification of Mutual Fund Distributors
Explain the Modes of Distribution
Understand the Pre-requisites to Become Distributor of the Mutual Fund
Explain Revenue for a Mutual Fund Distributor
Know the Commission Disclosure mandated by SEBI
Explain the Due Diligence Process by AMCs for Distributors of Mutual Funds
Discuss Nomination Facilities to Agents / Distributors and Payment of Commission to Nominee
Explain About Change of Distributor
VII. Net Asset Value, Total Expense Ratio and Pricing of Units
Discuss the Fair Valuation Principles
Compute Net Assets of a Mutual Fund Scheme and NAV
Explain about Dividends & Distributable Reserves
Know about the Concept of Entry and Exit Load and its Impact on NAV
Know about the Key Accounting and Reporting Requirements Applicable to Mutual Funds
Know about the NAV, Total expense ratio and Pricing of units for the Segregated Portfolio
VIII. Taxation
Understand Applicability of various taxes in respect of Mutual Funds
Understand about Capital gains, Capital gains (Long term & Short term) tax and Indexation.
Understand about the Dividend Income and Dividend Income tax
Understand the Difference Between dividend distribution tax and capital gains tax
Understand the basics of Setting off Gains and Losses under Income Tax Act
Understand about Securities Transaction Tax
Understand about Tax benefit under Section 80C of the Income Tax Act for investment pertaining to Mutual Funds
Understand about Tax Deducted at Source (TDS) in Mutual Funds
Understand Applicability of GST in Mutual Funds
IX. Investor Services
Describe the NFO Process
Explain about the New Fund Offer Price /On-going price for subscription
Discuss Different types of investment plans and options
Explain how the mutual fund units are allotted to the investor
Describe the content and periodicity of Statement of Accounts for investments
Describe different types of Mutual Fund Investors
Explain how to fill in the application form for Mutual Funds
Describe the financial transactions with Mutual Funds (Purchase, Redemption and Switches)
Explain Cut-off time and Time Stamping
Describe the KYC requirement for mutual fund investors
Explain the different types of systematic transactions
Explain operational aspects of systematic transactions
Explain Non – Financial Transactions in Mutual Funds
Discuss change in Status of Special Investor Categories
Explain Investor Transactions – turnaround times
X. Risk, Return and Performance of funds
Understand the General and Specific Risk Factors
Explain the Factors that affect mutual fund performance
Describe Drivers of Returns and Risk in mutual fund Scheme
Understand the Measures of Returns
Know about the SEBI norms regarding representation of returns by Mutual Funds in India
Explain risks in fund investing with a focus on investors
Understand the Measures of Risk
Explain certain provisions with respect to Credit Risk
XI. Mutual Fund Scheme Performance
Explain the concept of Benchmarks
Compare Price Return Index and Total Return Index
Identify the basics of choosing an appropriate performance benchmark
Describe the use of market benchmarks to evaluate Equity Fund Performance
Describe the use of market benchmarks to evaluate Debt Fund Performance
Describe the use of market benchmarks to evaluate Other Schemes
Explain Quantitative Measures of Fund Manager Performance
Define Tracking Error
Understand the different Sources for disclosure of scheme performance (Scheme documents, AMFI and AMC website and Fund Fact Sheet)
XII. Mutual Fund Scheme Selection
Explain Scheme Selection based on Investor needs, preferences and risk-profile
Explain Risk Levels in mutual fund schemes
Explain Scheme Selection based on investment strategy of Mutual Funds
Explain Selection of Mutual Fund scheme offered by different AMCs or within the scheme category
Know about selecting options in mutual fund schemes
Know about Do’s and Don’ts while selecting mutual fund schemess
NISM Exam Study Material
If you want to qualify the NISM Test with good grades and in the first attempt then it is highly necessary to prepare strongly. For this you can take help from the Mutual Fund Mock Test, NISM Books and other material like the News sections. Study material is provided by NISM upon registration for the exam.
Frequently Asked Questions (FAQs):
1. What is the Regulation Over Using Electrical Items Like a Calculator in the NISM Examination?
Using the calculator or any other electronic item in the NISM examination hall is strictly prohibited.
2. What if a Candidate Fails in the NISM examination? Is there any Refund Policy?
No, there is no procedure for fee refund. But yes, if the exam gets cancelled by the NISM, then a refund will be given to the candidate.
3. How can the fees for nism certification for mutual fund distributors be paid?
The NISM exam exam fees can easily be paid through online mode by using a debit card, net banking. Exam NISM certification fees fees can also be submitted through offline mode by using the demand Drafts.
4. Is it Possible to Give the NISM Exam in the Hindi language?
Yes, a prospect can give the examination in the Hindi language. However, the exam will be conducted in offline mode only in case of Hindi.
5. What is the Scope of the NISM certificate?
NISM certificate is essential for the mutual fund distributors to get the ARN number.
