Mutual Fund Distributors (Level 2) Certification Examination

 Mutual Fund Distributors (Level 2) : Overview

The examination seeks to create a common knowledge benchmark for associated persons, i.e., distributors, agents or any persons employed or engaged or to be employed or engaged in the sale and/or distribution of mutual fund products and advisory functions, in order to enable a better understanding of features of advanced mutual fund products, fund valuation, fund performance measurements, investor service and related regulations.

NISM has specified the NISM-Series-V-A: Mutual Fund Distributors Certification Examination as the mandated certification examination for distributors, agents or any persons employed or engaged or to be employed or engaged in the sale and/or distribution of mutual fund products vide NISM communiqué NISM/Certification/Series-V-A: MFD/2010/01 dated May 05, 2010. SEBI has further mandated the same vide notification No. LAD-NRO/GN/2010-11/09/6422 dated May 31, 2010.

National Institute of Securities Markets (NISM) now announces the launch of a higher level examination, for those candidates who wish to assess themselves against higher standards of overall expertise related to mutual funds sales, distribution and advisory functions.  The NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination is suitable for: 

  • Mutual fund distributors and agents
  • Persons employed or engaged in the sale and/or distribution of mutual fund products
  • Persons to be employed or engaged in the sale and/or distribution of mutual fund products
  • Students interested in gaining advanced knowledge of mutual fund products, sales, distribution and related regulations

 Mutual Fund Distributors (Level 2) : Fees Details

Name of Examination: NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination

Fees (Rs.) Test Duration (in minutes) No. of Questions Maximum Marks Pass Marks* (%) Certificate Validity (in years)#
1770+ 120 68~ 100 60 3

 

Inclusive of Service Tax. Payment Gateway Charges extra.

~ 36 multiple choice questions of 1 mark each and 8 caselets with 4 multiple choice questions of 2 marks each (Total 68 questions adding up to 100 marks).

* Negative marking – 25% of the marks assigned to the question.

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

Chapter – I : Mutual Fund Structures

  •  Fund of Funds
  • Exchange Traded Funds
  • Real Estate Mutual Funds
  • Venture Capital Funds
  • Private Equity Funds
  • International funds

Chapter – 2 : Legal and Regulatory Environment of Mutual Funds

  • Regulatory Framework for Real Estate Mutual Funds
  • Investment Norms for Mutual Funds
  • SEBI Norms for Mutual Funds’ investment in Derivatives
  • SEBI norms with respect to change in controlling interest of an AMC
  • Changes in Mutual Fund Schemes

Chapter – 3 : Fund Distribution and Sales Practices

  • Internet and Mobile Technologies
  • Stock Exchanges

Chapter – 4 : Investment and Risk Management

  •  Fundamental Analysis
  • Technical Analysis
  • Quantitative Analysis
  • Debt Investment Management
  • Issues for a Debt Fund Manager
  • Derivatives
  • Application of Derivatives

Chapter – 5  : Valuation of Schemes

  •  Equities
  •  Debt
  •  Non-Performing Assets and Provisioning for NPAs
  •  Gold
  • Real Estate

Chapter – 6 :  Accounting

  • Net Asset Value
  • Investor Transactions
  •  Distributable Reserves
  • Unique Aspects of Real Estate Schemes Accounting

Chapter – 7 : Taxation

  •  Taxes for AMCs: Securities Transaction Tax and Income Distribution Tax
  • Taxes for Investors: Securities Transaction Tax, Taxes on Dividend, Capital Gains, Set-off    and Carry Forward of Losses, Dividend Stripping and Bonus Stripping.

Chapter – 8 : Investor Services

  • New Fund Offer
  •  Open-end Fund
  •  Closed-end Fund
  •  Exchange Traded Fund
  •  Nomination and Pledge

Chapter – 9 : Scheme Evaluation

  •  Measures of Return
  •  Measures of Risk
  •  Benchmarks and Relative Returns
  •  Risk-adjusted Returns

Chapter – 10 :  Asset Classes and Alternate Investment Products

  • Historical Returns
  •  Perspectives on Asset Class Returns
  •  Alternative Investment Products

Chapter – 11 :  Cases in Financial Planning

  • Practical Aspects of Financial Planning (cases/examples)

Chapter – 12 : Ethics and Investor Protection

  • Code of Conduct
  • Mis-selling
  •  Safeguards in Mutual Fund Structure
  •  Regulatory Steps for Protecting Investors Against Fraud