All About NISM Certification Exam
To Become a Mutual Fund Distributor in India, one must clear the NISM-Series-V-A: Mutual Fund Distributors Certification Examination conducted by the National Institute of Securities Markets (NISM).
The certification is essential for anyone intending to sell mutual funds legally since it measures the understanding required by Mutual Fund Distributors to offer good financial advice to clients. The goal of the certification is to improve the industry’s distribution, sales quality, and related support services.
We will help you with the knowledge of the NISM Certification exam—eligibility, registration, and various details of the syllabus, exam pattern, etc. So, let us understand how you can certify with the NISM mutual fund distributor exam, having all the right qualifications.
- To Become a registered Mutual Fund Distributor of India, you must pass the NISM certification exam designed by the National Institute of Securities Markets (NISM).
- This certification is a must for every individual who is eagerly waiting to distribute mutual fund products legally in India.
- The NISM certification confirms that you have expertise in mutual fund schemes, regulation, and client servicing with ethical and effective advisory.
- The NISM mutual fund distributor exam is created to enhance the quality of sales, servicing, and investor protection in the mutual fund business.
- Eligibility, syllabus, registration, and pattern are explained to the candidates by the NISM mutual fund distributor exam preparation.
- Successful passing of this exam will make you SEBI compliant and eligible to apply for an ARN (AMFI Registration Number).
What’s New in the 2024-25 NISM Certification Exam?
As per the latest update, the NISM mutual fund distributor exam now follows the December 2024 edition of the workbook, introduced after SEBI’s October 2024 guidelines.
Key Additions Include Modules On:
- Investor risk profiling and suitability assessment, including client behavior patterns.
- SEBI’s SCORES platform for investor grievance redressal is crucial for maintaining compliance.
- Updated sections on mutual fund taxation and asset allocation norms.
- The NISM certification exam now includes case-based questions to assess the real-world application of ethical distribution, investor suitability, and regulatory obligations.
- SEBI’s revised circulars on commission disclosure and transparent selling practices are also included in the NISM certification syllabus, making ethics a critical focus area.
- Candidates are encouraged to refer to the updated syllabus to align with current market practices and SEBI regulations before attempting the NISM mutual fund distributor exam
Key Highlights
- 1 . Eligibility Requirements for NISM Certification Exam
- 2 . Examination Modes for NISM Exam
- 3. Fee Structure for NISM Certification
- 4 . Validity Period of NISM Certificate
- 5 . Exam Format for NISM Certification
- 6 . Module Name for NISM Series VA
- 7 . Enrollment Process for NISM Examinations
- 8 . Syllabus for NISM Certification Exams
- 9 . Study Resources for NISM Examinations
- 10 . Common Queries about NISM Certification
- 11. Becoming a Certified Mutual Fund Distributor
12. NISM Exam Syllabus
NISM Exam Eligibility:
As per The National Institute of Securities Market (NISM) guidelines:
- Individuals aged 18 years and above are eligible to take the NISM Certification Exam and pursue a career as a mutual fund distributor or advisor.
- The Association of Mutual Fund (AMFI) website does not specify any educational qualifications for participation.
Mode to Appear in the NISM Mutual Fund Distributor Exam:
According to information provided on the Association of Mutual Fund (AMFI) website regarding NISM details:
Candidates have the option to take the examination in either Hindi or English language. The mode of the NISM Certification Exam for becoming a mutual fund distributor is Offline for the Hindi language, whereas for English, candidates have the choice of both Online and Offline modes
How Much NISM Exam Fee to be submitted?
During the registration process for the NISM Mutual Fund distributor exam, individuals are required to submit an examination fee of Rs.1,500/-. Payment can be made online through Credit Card/Debit Card or net banking.
What is the Validity for a NISM Certificate?
As per the NISM details available at Association of Mutual Fund (AMFI) website, the certificate will be valid for around 3 years.
NISM Exam Pattern:
- The examination consists of 100 questions, each valued at 1 mark, totaling a maximum score of 100 marks.
- To pass the examination, candidates must achieve a minimum score of 50%.
- There is no negative marking system in place for incorrect answers.
Note: Passing certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.
Name of Module: NISM-Series-V-A: Mutual Fund Distributors Certification Examination
| Fees (Rs.) | Test Duration (in minutes) | No. of Questions | Maximum Marks | Pass Marks (%) | Certificate Validity (in years) |
|---|---|---|---|---|---|
| 1500+ | 120 min | 100 | 100 | 50 | 3 |
How to Enroll for the NISM Certification Exam?
To register for the NISM certification exam, kindly go through the given updated steps:
Go to the official NISM Certification Portal and choose the option of ‘New Account’ to begin the registration process.
- Enter your profile details and upload scanned copies of your latest passport-size photo, Aadhaar Card, and PAN Card in JPG format.
- Your profile will be validated by NISM, and the approval typically takes 3 working days.
- After approval, log in and choose the NISM mutual fund distributor exam (Series V-A). Choose your city preference, time slot, and mode of exam.
You may choose:
- Offline mode: English and Hindi.
- Online (Remote Proctored mode): English only, preferably for those appearing from home. A webcam computer is needed.
- Pay ₹1,500 exam fee through debit/credit card, UPI, or net banking.
- Download the December 2024 edition of the NISM certification official workbook. This edition includes the latest SEBI updates like investor risk profiling, ethics, SCORES grievance redressal system, and commission disclosure norms.
- Utilize this workbook and online mock tests to get adequately prepared for the mutual fund distributor exam.
- After clearing the NISM certification exam, get your AMFI Registration Number (ARN) registered, which is a mandatory step for becoming a certified mutual fund distributor.
Tip: Schedule the exam well in advance, at least 3 weeks, to prepare with recent material.
NISM Exam Syllabus:
In order to qualify the NISM Exam, it is necessary for the personnel to understand the whole NISM Examination Syllabus. Following are the topics included in the NISM Curriculum.
I. Investment Landscape
- Understand the parameters of the Indian Economy: Describe about Investors and their Financial Goals
- Understand Savings and Investment
- Discuss Different Asset Classes
- Understand the Classification of Investment Risks
- Explain Risk Measure and Management Strategies
- Understand Behavioral Biases in Investment Decision Making
- Understand Risk Profiling
- Explain the Asset Allocation
- Comparison between the two approaches – Do-it-yourself and Taking Professional Help
II. Concept & Role of a Mutual Fund
- Explain the Concept of Mutual Fund
- Understand the Classifications of Mutual Funds
- Describe the Growth of the Mutual Fund Industry in India
III. Legal Structure of Mutual Funds in India
- Describe the Structure of Mutual Funds in India
- Understand the Key Constituents of a Mutual Fund
- Understand the Organisation Structure of Asset Management Company
- Understand the Role and Support Functions of Service Providers of Mutual Funds
- Explain the Role and Function of AMFI
IV. Legal and Regulatory Framework
- Describe Role of Regulators in India
- Discuss Role of Securities and Exchange Board of India
- Know the Due Diligence Process Followed by AMCs for Distributors of Mutual Funds
- Explain Investor Grievance and Redressal Standards (Explain about SCORES)
- Understand AMFI Code of Conduct for Intermediaries
V. Scheme Related Information
- Understanding the Mandatory Documents and their Purpose, Objective and Significance
- Explain the Non-Mandatory Disclosures
VI. Fund Distribution and Channel Management Practices
- Explain the Role and Importance of Mutual Fund Distributors
- Understand the Classification of Mutual Fund Distributors
- Explain the Modes of Distribution
- Understand the Pre-requisites to Become Distributor of the Mutual Fund
- Explain Revenue for a Mutual Fund Distributor
- Know the Commission Disclosure mandated by SEBI
- Explain the Due Diligence Process by AMCs for Distributors of Mutual Funds
- Discuss Nomination Facilities to Agents / Distributors and Payment of Commission to Nominee
- Explain About Change of Distributor
VII. Net Asset Value, Total Expense Ratio and Pricing of Units
- Discuss the Fair Valuation Principles
- Compute Net Assets of a Mutual Fund Scheme and NAV
- Explain about Dividends & Distributable Reserves
- Know about the Concept of Entry and Exit Load and its Impact on NAV
- Know about the Key Accounting and Reporting Requirements Applicable to Mutual Funds
- Know about the NAV, Total expense ratio and Pricing of units for the Segregated Portfolio
VIII. Taxation
- Understand Applicability of various taxes in respect of Mutual Funds
- Understand about Capital gains, Capital gains (Long term & Short term) tax and Indexation.
- Understand about the Dividend Income and Dividend Income tax
- Understand the Difference Between dividend distribution tax and capital gains tax
- Understand the basics of Setting off Gains and Losses under Income Tax Act
- Understand about Securities Transaction Tax
- Understand about Tax benefit under Section 80C of the Income Tax Act for investment pertaining to Mutual Funds
- Understand about Tax Deducted at Source (TDS) in Mutual Funds
- Understand Applicability of GST in Mutual Funds
IX. Investor Services
- Describe the NFO Process
- Explain about the New Fund Offer Price /On-going price for subscription
- Discuss Different types of investment plans and options
- Explain how the mutual fund units are allotted to the investor
- Describe the content and periodicity of Statement of Accounts for investments
- Describe different types of Mutual Fund Investors
- Explain how to fill in the application form for Mutual Funds
- Describe the financial transactions with Mutual Funds (Purchase, Redemption and Switches)
- Explain Cut-off time and Time Stamping
- Describe the KYC requirement for mutual fund investors
- Explain the different types of systematic transactions
- Explain operational aspects of systematic transactions
- Explain Non-Financial Transactions in Mutual Funds
- Discuss change in Status of Special Investor Categories
- Explain Investor Transactions and turnaround times
X. Risk, Return and Performance of funds
- Understand the General and Specific Risk Factors
- Explain the Factors that affect mutual fund performance
- Describe Drivers of Returns and Risk in mutual fund Scheme
- Understand the Measures of Returns
- Know about the SEBI norms regarding representation of returns by Mutual Funds in India
- Explain risks in fund investing with a focus on investors
- Understand the Measures of Risk
- Explain certain provisions with respect to Credit Risk
XI. Mutual Fund Scheme Performance
- Explain the concept of Benchmarks
- Compare the return index and the total return index.
- Identify the basics of choosing an appropriate performance benchmark
- Describe the use of market benchmarks to evaluate Equity Fund Performance
- Describe the use of market benchmarks to evaluate Debt Fund Performance
- Describe the use of market benchmarks to evaluate Other Schemes
- Explain Quantitative Measures of Fund Manager Performance
- Define a tracking error.
- Understand the different Sources for disclosure of scheme performance (Scheme documents, AMFI and AMC website and Fund Fact Sheet)
XII. Mutual Fund Scheme Selection
- Explain Scheme Selection based on Investor needs, preferences and risk-profile
- Explain Risk Levels in mutual fund schemes
- Explain Scheme Selection based on investment strategy of Mutual Funds
- Explain Selection of Mutual Fund scheme offered by different AMCs or within the scheme category
- Know about selecting options in mutual fund schemes
- Know about Do’s and Don’ts while selecting mutual fund schemess
Accessing Study Materials
To prepare effectively for the NISM Series V-A exam on your initial attempt requires thorough preparation and understanding the NISM exam syllabus.
- Official NISM Workbooks: NISM provides free downloadable workbooks for all certification exams, including the Mutual Fund Distributors Certification.
Access them here: NISM Certification Workbooks - Online Study Resources: Platforms like NISM Exams offer structured breakdowns and study tips aligned with the syllabus.
Practice Tests: Utilize mock tests available on platforms like Udemy to familiarize yourself with the exam format and question types.
अक्सर पूछे जाने वाले प्रश्न (एफएक्यू):
1. What are the Regulations Regarding the Use of Electrical Items Such as Calculators in the NISM Examination?
The use of calculators or any other electronic devices in the NISM examination hall is strictly prohibited.
2. Is There a Refund Policy if a Candidate Fails the NISM Examination?
No, there is no refund procedure for exam fees in case of candidate failure. However, if the exam is cancelled by NISM, a refund will be issued.
3. What are the Payment Methods for NISM Certification Fees for Mutual Fund Distributors?
NISM certification course fee can be conveniently paid online using a debit card or net banking. Alternatively, payment can also be made offline through demand drafts.
4. Can the NISM Exam be Taken in Hindi?
Yes, candidates have the option to take the examination in Hindi. However, for Hindi medium, the exam is conducted offline only.
5. What is the Significance of the NISM Certificate?
The NISM certificate course is vital for mutual fund distributors to achieve the NISM certificate and obtain the ARN number.
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