NISM 5B Mutual Fund Foundation Certification Exam Notes

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  • Liquidity Advantage: Open-ended funds allow entry and exit at any time, enhancing liquidity.
  • Cost Efficiency: Mutual funds offer economies of scale, lowering transaction costs for investors.
  • Regulatory Oversight: SEBI imposes limits on expenses to protect investor returns.
  • NAV Calculation: Net Asset Value (NAV) reflects the per-unit value of a scheme’s assets minus liabilities.
  • Pass-Through Vehicle: Mutual funds pass risks and returns directly to investors, not guaranteeing returns.

NISM 5B Mutual Fund Foundation

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