NISM 5B Mutual Fund Foundation Certification Examination

AMFI (Association of Mutual Funds in India) introduces New Cadre of Mutual Fund Distributors

• Insurance Agents
• Postal agents
• Retired government and semi-government officials (class III and above or equivalent) with a service of at least 10 years
• Retired teachers with a service of at least 10 years
• Retired bank officers with a service of at least 10 years

Exam Fee and Validity

NISM MFF Exam fee Rs 1,200 and Validity 3 years.

Renewal of Certificate :

By attending NISM MFF CPE.

How to Prepare for Mutual Fund Foundation Certification Examination ?

Where can I get Mutual Fund Foundation Exam Dates ?

Click here for NISM Exam dates,Centre

How can I register for NISM-Series-VB: Mutual Fund Foundation Examination ?

NISM Registration - https://certifications.nism.ac.in/nismaol/Candidate/UserRegistration.aspx

What is the difference between the normal Mutual Fund Distributor and the New Cadre of distributor?

Normal Distributor can sell all types of Schemes. However the new cadre of distributor is allowed to sell units of simple and performing mutual Fund Schemes. Simple and performing Mutual Fund Schemes will be notified.

What to do after passing NISM Series VB Mutual Fund Foundation Exam?

After getting the certificate from NISM, the candidate has to approach CAMS along with a fee of Rs 1,500 for applying for ARN (AMFI Registration Number)

Syllabus

Unit I: Concept and Role of a Mutual Fund

1. Know the concept of securities markets and its role in the Indian Economy
2. Understand the concept of mutual fund and compare and contrast with conventional investment avenues such as Bank Deposits, Post Office Deposits, Public Provident Fund
3. Understand the mutual fund industry and related concepts
4. List the advantages and limitations of a mutual fund
5. Understand the two plans or routes for investors to invest in a mutual fund
6. Know about the different kind of investment options available to the investors
7. Explain the role of new cadre of mutual fund distributors

Unit II: Fund Structure and Constituents

1. Know the basic legal structure of mutual funds in India and understand their role
2. Understand the role and support functions of service providers of mutual funds
3. Understand the organisation structure of Asset Management Company

Unit III: Mutual Fund Products

1. Understand the classification of mutual fund schemes
2. Explain the categorisation and definition of open-end mutual fund schemes

Unit IV: Performance of Mutual Funds

1. Understand the classification of mutual fund schemes
2. Understand the concepts of Entry Load and Exit Load and their application in calculating the Net Asset Value (NAV)
3. Understand the calculation of returns for an investor investing in mutual fund schemes
4. Understand the concept of risk in a mutual fund investment
5. Understand the measures of risk adjusted return
6. Understand the concept of benchmark for some of the mutual fund schemes

Unit V: Mutual Funds Taxation

1. Understand the different types of taxes associated with mutual fund schemes
2. Select different schemes of mutual funds based on their tax implication

Unit VI: Offer Document

1. Know the process of New Fund Offer (NFO)
2. Understand the key components of an offer document

Unit VII: Fund Distribution and Sales Practices

1. Know various distribution channels for mutual funds
2. Know the pre-requisites to be fulfilled to become a distributor of a mutual fund
3. Know the transaction charges and commission structure for mutual fund distributors
4. Know the regulations, guidelines and code of conduct for selling mutual fund schemes

Unit VIII: Investor Transactions

1. Know the types of investors eligible to invest in mutual fund schemes
2. Understand the compliance requirements for mutual fund investors
3. Know the KYC process followed by distributors through KYC Registered Agency (KRA)
4. List the types of investor transactions in mutual funds
5. Understand the different transaction mediums for purchase and repurchase (sale) of mutual fund
6. Know the cut-off timing for subscription and redemption of mutual fund schemes
7. Understand the concept of dematerialisation and mutual fund transactions through stock exchanges

Unit IX: Investment Services

1. Describe the mutual fund investment plans
2. Understand the systematic transaction processes
3. Describe the contents and periodicity of Statement of Account (SoA) and Consolidated Account Statement (CAS) to the investor
4. Explain the process for nomination and pledge
5. List investor services and facilities offered by AMCs

Unit X: Asset Classes

1. Understand the objective behind investing in different asset classes through mutual funds

Unit XI: Financial Planning Concepts

1. Understand the basics of Financial Planning
2. Relate financial planning to financial goals and the time horizon for their achievement
3. Relate Financial Goals with Investment Requirements

Unit XII: Helping Investors with Financial Planning

1. Understand the steps of financial planning
2. Know various stages of Life Cycle and investment needs
3. Know various stages of Wealth Cycle and investment needs
4. Understand the importance of risk profiling
5. Understand financial planning with the help of model portfolios
6. Understand the important parameters for selecting mutual fund schemes
7. Understand taxation and liquidity aspects while selecting growth and dividend option within a mutual fund scheme
8. Identify the sources of data to track mutual fund performance

Unit XIII: Legal and Regulatory Environment

1. Know the role of SEBI in regulating mutual funds
2. List the functions of AMFI
3. Understand Investors rights and obligations