NISM TEST MATERIAL

With effect from June 01, 2010, the following category of 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 shall be required to have a valid certification from the National Institute of Securities Markets (NISM) by passing the certification examination as mentioned in the NISM communiqué NISM/Certification/Series-V-A: MFD/2010/01 dated May 05, 2010.

Provided that if the said associated person has acquired a valid certificate under the AMFI Mutual Fund (Advisors) Module prior to June 01, 2010, , he shall be exempted from the requirement of the aforementioned NISM certification examination. For further details, please log on to www.nism.ac.in

NISM-Series-V-A: Mutual Fund Distributors Certification Examination The examination seeks to create a common minimum knowledge benchmark for all persons involved in selling and distributing mutual funds including:
1] Individual Mutual Fund Distributors
2] Employees of organisations engaged in sales and distribution of Mutual Funds
3] Employees of Asset Management Companies, especially persons engaged in sales and distribution of Mutual Funds
The certification aims to enhance the quality of sales, distribution and related support services in the mutual fund industry.

Examination Objectives: On successful completion of the examination, the candidate should:
  1. Know the basics of mutual funds, their role and structure, different kinds of mutual fund schemes and their features
  2. Understand how mutual funds are distributed in the marketplace, how schemes are to be evaluated, and how suitable products and services can be recommended to investors and prospective investors in the market.
  3. Get oriented to the legalities, accounting, valuation and taxation aspects underlying mutual funds and their distribution.
  4. Get acquainted with financial planning as an approach to investing in mutual funds, and as an aid for mutual fund distributors to develop long-term relationships with their clients.