All About NISM Certificates Exam
The NISM (National Institute of Securities Markets) Certification Exam is a mandatory examination for individuals who wish to become MFDs in India. NISM is an educational institution established by the Securities and Exchange Board of India (SEBI) to enhance the quality of the securities markets.
The NISM-Series-V-A: MFD Certification Examination is specifically designed for individuals who want to distribute mutual fund products. This certification is a prerequisite for obtaining an AMFI Registration Number (ARN), which is essential for selling mutual funds in India.
Passing the NISM exam demonstrates your understanding of mutual fund products, regulations, and MFD practices, ensuring you can provide quality advice to investors.
Key Highlights
1. NISM Certifications Eligibility Criteria
2. Mode to Appear in the NISM Exam
3. How Much NISM Certification Fees to be submitted?
4. What is the Validity of NISM Certificate?
5. NISM Certification Exam Pattern
6. NISM Series VA - Name of Module
7. How to Enroll for the NISM Exam?
8. NISM Certifications Exam Syllabus
9. NISM Exam Study Material
10. Frequently Asked Questions (FAQs)
11. Become an MFD
NISM Exam Eligibility
According to the guidelines given by The National Institute of Securities Market (NISM):
- Anyone who is 18 years and above can participate in the NISM Exam and become an MFD.
- There is no educational qualification listed as per the Association of Mutual Fund (AMFI) website.
- If you are looking to enter the MFD business, you need to clear the NISM certification exam and obtain the NISM certificate examination to get started.
How to Get NISM Certification?
- Register for the NISM exam by visiting the official website.
- Complete the NISM registration process and proceed with the NISM login to schedule your exam.
- Choose the NISM certificate course that matches your requirements.
- After passing the MFD exam, you will receive the NISM mutual fund certification.
Why is NISM Certification Important?
- It is a mandatory requirement for those who want to become MFDs.
- The AMFI certification ensures compliance with industry regulations.
- Helps in building credibility and trust among clients.
This certification allows a person to become a certified MFD.
Mode to Appear in the NISM MFD Exam
Based on the details provided by the Association of Mutual Funds in India (AMFI), the NISM MFD Exam can be attempted either in English or Hindi.
The NISM certification examination is provided both online and offline for English speakers.
For Hindi, it is made available only offline.
The online option is highly popular as it is convenient, provided from various centers, and faster in terms of result processing.
Online Mode
Available for English language. The online option is convenient, provided from various centers, and faster in terms of result processing.
Offline Mode
Available for both English and Hindi languages. Candidates can appear for the exam at designated NISM test centers across India.
Steps to Get NISM Certification
- Register for the NISM exam on the official portal.
- Select the NISM certificate course relevant to MFD.
- Appear for the NISM certificate examination as per the chosen mode.
- Clear the mutual fund exam to obtain the NISM mutual fund certification.
If you are wondering what is NISM certification, it is a mandatory qualification to become a certified MFD.
How Much NISM Exam Fee to be submitted?
The NISM-Series-V-A: MFD Certification Examination fee is ₹1,500 (inclusive of taxes). This fee is payable at the time of registration for the exam.
The exam fee is non-refundable and non-transferable. Candidates must ensure they are fully prepared before registering for the examination. In case of failure, candidates will need to pay the full fee again to retake the exam.
What is the Validity for a NISM Certificate?
The NISM-Series-V-A certificate is valid for 3 years from the date of issue. During this period, the certificate holder can use it to obtain and maintain their AMFI Registration Number (ARN).
To renew the certificate after 3 years, certificate holders must complete the mandatory Continuous Professional Education (CPE) training program. The CPE training ensures that MFDs stay updated with the latest developments in the mutual fund industry and regulatory changes.
It is important to complete the CPE training before the certificate expires to avoid any interruption in your MFD activities.
NISM Exam Pattern
The NISM Exam follows a structured pattern for candidates appearing in the MFD exam. Below are the key details:
| Parameter | Details |
|---|---|
| Total Questions | 100 questions |
| Marks per Question | 1 mark each (Maximum marks: 100) |
| Passing Marks | 50% (50 marks out of 100) |
| Negative Marking | No negative marking |
How to Appear for the NISM Certificate Examination?
- Complete the NISM registration on the official portal.
- Log in using your NISM login credentials.
- Choose the relevant NISM certificate course and exam mode.
- Appear for the mutual fund exam and clear it to receive the NISM mutual fund certification.
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: MFD Certification Examination
The NISM-Series-V-A: MFD Certification Examination is the official certification program for individuals who wish to become MFDs in India.
This module covers comprehensive topics related to mutual fund products, their features, benefits, risks, regulatory framework, and MFD practices. The examination ensures that candidates have a thorough understanding of:
- Mutual fund concepts and products
- Regulatory framework and compliance requirements
- Investment strategies and portfolio management
- Client relationship management
- Ethical practices and code of conduct
Successful completion of this examination is mandatory for obtaining an AMFI Registration Number (ARN) and becoming a registered MFD.
How to Enroll for The NISM Exam?
To enroll for the NISM-Series-V-A: MFD Certification Examination, follow these steps:
- Visit the NISM Website: Go to the official NISM website (www.nism.ac.in) and navigate to the certification section.
- Create an Account: Register yourself on the NISM portal by providing your personal details, email ID, and mobile number.
- Select the Exam: Choose NISM-Series-V-A: MFD Certification Examination from the list of available exams.
- Fill Application Form: Complete the online application form with all required details including personal information, educational qualifications, and contact details.
- Upload Documents: Upload scanned copies of required documents such as photograph, signature, and identity proof.
- Pay Exam Fee: Pay the examination fee of ₹1,500 online through the available payment gateways.
- Select Exam Date & Center: Choose your preferred exam date and test center (for offline mode) or schedule your online exam slot.
- Download Admit Card: After successful registration, download your admit card from the NISM portal.
NISM Exam Syllabus
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 MFDs
- 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. MFD and Channel Management Practices
- Explain the Role and Importance of MFDs
- Understand the Classification of MFDs
- Explain the Modes of Distribution
- Understand the Pre-requisites to Become an MFD
- Explain Revenue for an MFD
- Know the Commission Disclosure mandated by SEBI
- Explain the Due Diligence Process by AMCs for MFDs
- Discuss Nomination Facilities to Agents / Distributors and Payment of Commission to Nominee
- Explain About Change of MFD
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 – 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 Price Return Index and 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 Tracking Error
- Understand the different Sources for disclosure of scheme performance
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 schemes
NISM Exam Study Material
If you want to qualify the NISM Test with good grades and in the first attempt then it is highly necessary to prepare strongly. For this you can take help from the Mutual Fund Mock Test, NISM Books and other material like the News sections. Study material is provided by NISM upon registration for the exam.
Frequently Asked Questions (FAQs)
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