The document discusses the NISM Series V-A Mutual Fund Distributors Certification Examination. It provides information on the eligibility requirements, aims of the exam, assessment structure, fees, curriculum covered, and how to register. Specifically: - The exam aims to assess knowledge of mutual fund regulations, distribution, financial planning, and more. One must pass it to become a registered open-end fund distributor in India. - It is open to those aged 18+ with a Class 12 or Class 10 diploma. The exam has 100 multiple-choice questions over 2 hours, with a passing score of 50%. - The curriculum covers topics like investment concepts, mutual fund structures, regulations, taxation,

1. NISM Series V-A Mutual Fund Distributors
Certification Examination
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NISM Examination
NISM conducts investment trust Distributors Certification Examination per annum.
The name of the examination is NISM series V-A investment trust distributors
certification. Only after clearing this examination, someone can become a registered
open-end fund distributor in India.
This exam aims to hide mutual funds regulations, rules, and code of conduct for
distributors, financial planning, etc. After clearing this exam one can work alone as an
investment trust distributor or he can join a finance-related companies like banks, nbfc,
insurance companies, and mutual funds distributor companies, etc in mutual funds
sales.
Eligibility for the examination
The candidate should be of 18 years and minimum qualification is class 12 or class 10
with 3 years of diploma.
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2. Who can apply for this examination?
A person whether working or not within the finance sector
Employees working within the company are engaged in mutual funds distribution.
Also, employees working within the asset management companies sales division.
Aim of Examination
The aim of this examination is to produce relevant knowledge of the subsequent things
to the one that is applying for open-end fund distribution:-
Firstly, basic knowledge and functioning of mutual funds, understanding different
kinds of mutual funds schemes and their features and their role and structure.
Secondly, to grasp how mutual funds are distributed and the way to judge
different mutual funds schemes.
Thirdly, the way to recommend the investors about suitable products and services.
Fourthly, to understanding the legalities, accounting, valuation, and taxation
aspects of the mutual funds.
And finally to, understanding financial planning as an approach to taking a
position in mutual funds to create future relationships with their clients.
Examination Assessment structure
The investment firm distribution examination consists of 100 questions of 1 mark each
and will be completed in 2 hours. The passing score for the examination is 50%. There
shall be no negative marking.
Name of Module: NISM-Series-V-A: investment company Distributors Certification
Examination
Fees
(Rs)
Test
Duration (in
minutes)
No. of
Questions
Maximum
Marks
Pass
Marks*
(%)
Negative
marking
Certificate
Validity (in
years)
1500+ 120 min 100 100 50 0 3 years
After the registration NISM sends a pdf file to check for the examination.
NISM-Series-V-A: Fund Distributors Certification Examination
Curriculum
I. Investment Landscape
1. Firstly, understand the parameters of the Indian Economy Describe Investors and
also their Financial Goals
2. Secondly, understand Savings and Investment
3. Discuss Different Asset Classes
4. Understand the classification of Investment Risks
5. Explain Risk Measure and Management Strategies
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3. 6. Understand Behavioral Biases in Investment higher cognitive process
7. Also Risk Profiling
8. Explain the Asset Allocation
9. Comparison between the 2 approaches -> Do-it-yourself and Taking Professional
Help
II. Concept & Role of an open-end fund
1. Explain the concept of an investment firm
2. Understand the classifications of mutual funds
3. Describe the expansion of the open-end fund industry in India
III. Legal Structure of Mutual Funds in India
1. Describe the structure of mutual funds in India
2. Understand the key constituents of a Mutual Funds
3. Second,understand the organizational structure of the Asset Management
Company
4. And third, understand the role and support functions of service providers of
mutual funds
5. Explain the role and performance of AMFI
IV. Legal and Regulatory Framework
1. Describe the role of regulators in India
2. Discuss the role of the Securities and Exchange Board of India
3. Know the Due Diligence process followed by AMCs for distributors of mutual
funds
4. Explain Investor Grievance and Redressal standards (Explain about SCORES)
5. Understand the AMFI Code of conduct for Intermediaries
V. Scheme Related Information
1. Understanding the Mandatory Documents and their purpose, objective and
significance
2. Explain the Non-Mandatory Disclosures
VI. Fund Distribution and Channel Management Practices
1. Firstly, explain the role and importance of investment firm distributors
2. Understand the classification of open-end investment company distributors
3. Secondly, explain the modes of distribution
4. Understand the Prerequisites to become Distributor of the open-end investment
company
5. Explain Revenue for a fund distributor
6. Know the Commission Disclosure mandated by SEBI
7. Explain the Due Diligence Process by AMCs for Distributors of Mutual Funds
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8. Discuss Nomination facilities to Agents / Distributors and Payment of
Commission to Nominee
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4. 9. Also change of distributor
VII. Net Asset Value, Total Expense Ratio and Pricing of Units
1. Discuss the Fair Valuation Principles
2. Compute net assets of a fund scheme and NAV
3. Explain about Dividends & Distributable Reserves
4. The Concept of Entry and Exit Load and its impact on NAV
5. Comprehend the Key Accounting and Reporting Requirements applicable to
mutual funds
6. Understand the NAV, Total expense ratio and pricing of units for the Segregated
Portfolio
VIII. Taxation
1. Understand Applicability of assorted taxes in respect of mutual funds
2. Understand about Capital gains, Capital gains (Long term & Short term) tax and
Indexation.
3. Dividend Income and Dividend tax
4. The difference between dividend distribution tax and capital gains tax
5. The fundamentals of Setting off Gains and Losses under revenue enhancement
Act
6. About Securities Transaction Tax
7. Tax deduction under Section 80C of the taxation Act for investment regarding
mutual funds
8. Tax Deducted at Source (TDS) in mutual funds
9. Applicability of GST in mutual funds
IX. Investor Services
1. Describe the NFO Process
2. Explain about the New Fund asking price /On-going price for subscription
3. Kinds of investment plans and options
4. How the investment trust units are allotted to the investor
5. Content and periodicity of Statement of Accounts for investments
6. Different kinds of fund Investors
7. Explain the way to fill within the form for mutual funds
8. The financial transactions with mutual funds (Purchase, Redemption and
Switches)
9. Cut-off time and Time Stamping
10. Describe the KYC requirement for investment trust investors
11. Various styles of systematic transactions
12. Operational aspects of systematic transactions
13. Non-Financial Transactions in Mutual Funds
14. Discuss the change in Status of Special Investor Categories
15. Investor Transactions-turnaround times
X. Risk, Return and Performance of funds
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5. 1. Understand the General and Specific Risk Factors
2. Explain the Factors that affect mutual fund performance
3. Describe Drivers of Returns and Risk in mutual fund Scheme
4. Understand the Measures of Returns and Risk.
5. Know about the SEBI norms regarding the representation of returns by mutual
funds in India
6. Explain risks in fund investing with a focus on investors
7. Certain provisions with respect to Credit risk
XI. Mutual fund Scheme Performance
1. Explain the concept of Benchmarks
2. Compare Price Return Index and Total Return Index
3. Identify the premise of selecting an appropriate performance benchmark
4. Describe the utilization of market benchmarks to gauge Equity Fund Performance
5. Employment of market benchmarks to gauge Debt Fund Performance
6. Utilization of market benchmarks to judge Other Schemes
7. Explain Quantitative Measures of Fund Manager Performance
8. Define Tracking Error
9. Understand the various Sources for disclosure of scheme performance (Scheme
documents, AMFI and AMC website, and Fund Fact Sheet)
XII. Fund Scheme Selection
1. Explain Scheme Selection supported Investor needs, preferences and risk profile
2. Risk Levels in investment company schemes
3. Scheme Selection supported investment strategy of mutual funds
4. Explain Selection of investment company scheme offered by different AMCs or
within the scheme category
5. Realize selecting options in investment trust schemes
6. Do’s and Don’ts while selecting open-end investment company schemes
How am I able to register for NISM-Series-V-A: investment trust Distributors
Certification Examination?
Firstly, candidates can register with any of the subsequent Test Administrators.
For registrations candidates may visit the above website.
Secondly, after successful registration, candidates may select a test centre, date
and time interval of their choice on the Test Administrator website.
So, candidates are required to follow further instructions available on the Test
Administrator websites.
Acceptable identity cards are PAN Card, driver’s license, Passport, and Adhar card
only.
You will receive a soft copy of the workbook/study material after enrollment for
the examination freed from cost.
For non-receipt of a soppy copy of the workbook/study material, you will contact
the respective Test Administrator:
NISM: certification@nism.ac.in
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