Mutual Fund Distributors (Level 2) Certification Examination

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.

What are the course objectives?
  • 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
Course Fees ?

 Fees Details:

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)#
1770+ 120 68~ 100 60 3

 

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.

Benefits from this Course ?

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.  

Mutual Fund Distributors (Level 2) Syllabus :

Chapter – 1: Mutual Fund Structures

  • Fund of Funds
  • Exchange Traded Funds
  • Real Estate Mutual Funds
  • Venture Capital Funds
  • Private Equity Funds
  • International funds

Chapter – 2: Legal and Regulatory Environment of Mutual Funds

  • Regulatory Framework for Real Estate Mutual Funds
  • Investment Norms for Mutual Funds
  • SEBI Norms for Mutual Funds’ investment in Derivatives
  • SEBI norms with respect to change in controlling interest of an AMC
  • Changes in Mutual Fund Schemes

Chapter – 3: Fund Distribution and Sales Practices

  • Internet and Mobile Technologies
  • Stock Exchanges

Chapter – 4: Investment and Risk Management

  •  Fundamental Analysis
  • Technical Analysis
  • Quantitative Analysis
  • Debt Investment Management
  • Issues for a Debt Fund Manager
  • Derivatives
  • Application of Derivatives

Chapter – 5: Valuation of Schemes

  •  Equities
  •  Debt
  •  Non-Performing Assets and Provisioning for NPAs
  •  Gold
  • Real Estate

Chapter – 6:  Accounting

  •  Net Asset Value
  •  Investor Transactions
  •  Distributable Reserves
  •  Unique Aspects of Real Estate Schemes Accounting

Chapter – 7: Taxation

  •  Taxes for AMC: Securities Transaction Tax and Income Distribution Tax
  •  Taxes for Investors: Securities Transaction Tax, Taxes on Dividend, Capital Gains, Set-off and Carry Forward of Losses, Dividend Stripping and Bonus Stripping.

Chapter – 8: Investor Services

  •  New Fund Offer
  •  Open-end Fund
  •  Closed-end Fund
  •  Exchange Traded Fund
  •  Nomination and Pledge

Chapter – 9: Scheme Evaluation

  •  Measures of Return
  •  Measures of Risk
  •  Benchmarks and Relative Returns
  •  Risk-adjusted Returns

Chapter – 10:  Asset Classes and Alternative Investment Products

  • Historical Returns
  • Perspectives on Asset Class Returns
  • Alternative Investment Products

Chapter – 11:  Cases in Financial Planning

  • Practical Aspects of Financial Planning (cases/examples)

Chapter – 12: Ethics and Investor Protection

  • Code of Conduct
  • Mis-selling
  • Safeguards in Mutual Fund Structure
  • Regulatory Steps for Protecting Investors Against Fraud