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
On successful completion of the examination the candidate should:
- Understand the salient features of Fund of Funds, Exchange Traded Funds, Real Estate Mutual Funds, Venture Capital Funds, Private Equity Funds and International Funds
- Know the legalities of real estate mutual funds, investment restrictions applicable to mutual fund schemes, and the processes for making changes in the structure of a mutual fund or any of its schemes
- Appreciate the working of newer channels of distribution viz. stock exchange and internet
- Get acquainted with the approaches fund managers take to manage investments and associated risks
- Understand how equities, debt, derivatives and real estate are valued in mutual fund schemes
- Get oriented to the accounting aspects of NAV determination, investor’s transactions with the fund and corporate actions by investee companies
- Know how taxation affects mutual fund schemes and investors
- Understand the processes underlying investment in NFO, open-end schemes, closed-end schemes and ETF as well as nomination and pledge processes relating to mutual funds
- Appreciate how schemes are evaluated
- Get a historical perspective on returns earned in different asset classes
- Get acquainted with the issues involved in selling alternate investment products
- Get oriented to basics of financial planning
- Understand ethical requirements and measures to protect mutual fund investors
The examination consists of 8 caselets with 4 multiple choice questions of 2 marks each per caselet and 36 one mark multiple choice questions adding up to 100 marks. The examination should be completed in 2 hours. There is negative marking of 25% of the marks assigned to a question. The passing score for the examination is 60 marks.
Study Material for NISM Series VC : Mutual Fund Distributors (Level 2) Certification Examination is available for online purchase at PrepCafe website.
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)#|
+ 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.