Performance measurement and evaluation of portfolio managers
13%
Unit 11
Taxation
5%
Unit 12
Regulatory, governance and ethical aspects of portfolio managers
9%
Assessment Structure: Exam Pattern for NISM PMS Distributors
The examination consists of 80 multiple choice questions and 3 case-based questions. The assessment structure is as follows:
Multiple Choice Questions [80 questions of 1 mark each]
80 x 1 = 80 marks
3 Case-based Questions [2 cases (each case with 5 questions of 1 mark each)] [1 case (with 5 questions of 2 marks each]
2 x 5 x 1 = 10 marks 1 x 5 x 2 = 10 marks
The examination should be completed in 2 hours. The passing score for the examination is 60 percent. There shall be negative marking of 25 percent of the marks assigned to a question.
Test Details
1770/- Inclusive of GST. Payment Gateway Charges extra.
80 multiple choice questions of 1 mark each, 2 caselets with 5 MCQs each of 1 mark each and 1 caselet with 5 MCQs of 2 marks each.
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.
Syllabus
I: Investment Landscape
Define Investment
Investment versus Speculation
Know the objectives of Investments
Estimating the required rate of return
Types of Investments
Channels for making investments
II: Introduction to Securities Markets
Define Securities Markets
Primary and secondary securities markets
Market participants and their activities
III: Investing in Stocks
Equity as an investment
Diversification of risk through equity instruments
Risks of equity investments
Overview of Equity Market
Equity research and stock selection
Technical Analysis
Understanding corporate governance
IV: Investing in Fixed Income Securities
Overview of Fixed Income Securities
Bond Characteristics
Determinants of bond safety
Analysis and Valuation of Bonds
Measuring price volatility for bonds
Determining Duration
V: Derivatives
Definition of Derivatives
Types of derivative products
Structure of derivative markets
Purpose of Derivatives
Introduction to Commodity and Currency Futures and Options
Underlying concepts in derivatives
VI: Mutual Fund
Concept and Role of Mutual Fund
Benefits of investing through mutual funds
Legal Structure of Mutual Fund in India
Working of mutual funds
Types of Mutual fund products
Processes of investing in mutual funds
Legal and Regulatory Framework – Key SEBI Regulation
Fact Sheet – Scheme Related Information
Net Asset Value, Total Expense Ratio, Pricing of Units
Mutual Fund Scheme Performance
Key performance measures
VII: Role of Portfolio Managers
Overview of portfolio managers in India
Types of portfolio management services
Organizational Structure of PMS in India
Registration requirements of a Portfolio Manager
General Responsibilities of a Portfolio Manager
Administration of investor’s portfolio
VIII: Operational Aspects of Portfolio Managers
Entities which can invest in PMS
Disclosures to the prospective clients
Process of on boarding of clients
Direct On-boarding in PMS
Liability in case of Default
Redressal of Investors grievances
Disclosures to the regulator
Costs, expenses and fees of investing in PMS
IX: Portfolio Management Process
Importance of Asset allocation decision
Understanding correlation across asset classes and securities
Steps in Portfolio Management Process
Asset allocation decision
Strategic versus Tactical Asset Allocation
Re-balancing of Portfolio
X: Performance measurement and evaluation of Portfolio Managers
Parameters to define performance – risk and return
Rate of return measures
Risk measures
Risk adjusted return
Performance Evaluation: Benchmarking and peer group analysis
Performance attribution analysis
Performance reporting to the Investor
Due Diligence and Portfolio Manager selection
Global Investment Performance Standard (GIPS)
GIPS Advertisement Guidelines
XI: Taxation
Taxation of investors
Taxation of various streams of income
Section 9A of Income Tax
XII: Regulatory, Governance and Ethical Aspects of Portfolio Managers
Prevention of Money Laundering Act, 2002
SEBI (Prohibition of Insider Trading) Regulation 2015
SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003
Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020
