NISM-Series V-A: Mutual Fund Certification Exam Notes
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Investors who register on the MFU are allotted a Common Account Number (CAN) under which all their mutual fund holdings are consolidated. Investors have to be KYC compliant to register for a CAN.
If an investor is not already KYC compliant, then the MFU will facilitate KYC registration along with the allotment of 'CAN'.
Pre-requisites to become Distributor of a Mutual Fund - Obtaining NISM Certification, Know Your Distributor Requirements, Obtaining AMFI Registration Number, Empanelment with AMCs Trail commission is calculated as a percentage of the net assets attributable to the Units sold by the distributor. The commission payable is calculated on the daily balances and paid out periodically to the distributor.
The trail commission is normally paid by the AMC on a quarterly basis or monthly basis. Since it is calculated on net assets, distributors benefit from increase in net assets arising out of valuation gains in the market.
There shall be no transaction charges on direct investments.
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