NISM Series V C: Mutual Fund Distributors (Level 2) Certification Examination

Who Should Prepare NISM 5C Mutual Fund Distributors Certification Examination?

This NISM Certification is Level 2 of NISM Mutual Fund Distributor Exam. After preparing for NISM Series V A, you can prepare for NISM V C. Although anyone who have interest in Mutual funds can prepare for this NISM Certification.

After preparing for NISM Series V C, you will learn about the basics of:

  • FUND DISTRIBUTION,
  • MUTUAL FUND STRUCTURES,
  • MUTUAL FUND ACCOUNTING,
  • MUTUAL FUND TAXATION,
  • ASSET CLASSES AND ALTERNATE INVESTMENT PRODUCTS.

Study Material For NISM Series V C:

You can buy Nism 5C workbook from Amazon or you can download Ebook of NISM 5C from here free of cost.

We have also provided Free Mock test for Nism Series V C in this website. Our Nism Mock test discuss all the relevant concepts of this Certification in detail and provide accurate explanation for every question.

LIST OF CHAPTERS IN NISM Series 5C :

Unit NAME OF UNITS DIFFICULTY LEVEL
1MUTUAL FUND STRUCTURESEasy
2LEGAL AND REGULATORY ENVIRONMENT OF MUTUAL FUNDSMedium
3FUND DISTRIBUTION AND SALES PRACTICESMedium
4INVESTMENT AND RISK MANAGEMENTMedium
5VALUATION OF SCHEMESTough
6ACCOUNTINGMedium
7TAXATIONMedium
8INVESTOR SERVICESMedium
9SCHEME EVALUATIONMedium
10ASSET CLASSES AND ALTERNATE INVESTMENT PRODUCTSEasy
11CASES IN FINANCIAL PLANNINGEasy
12ETHICS AND INVESTOR PROTECTIONEasy

NISM Series 5C Summary of all Units:

1. MUTUAL FUND STRUCTURES

1.1. Fund of Funds.
1.2. Exchange Traded Funds.
1.3. Real Estate Mutual Funds(REMF) & Real Estate Investment Trusts(REIT).
1.4. Venture Capital Funds.
1.5. Angel Funds.
1.6. Private Equity Funds.
1.7. International Funds.

LEGAL AND REGULATORY ENVIRONMENT OF MUTUAL FUNDS

2.1. Regulatory Framework for Real Estate Mutual Funds.
2.2. Regulatory Framework for Real Estate Investment Trusts.
2.3. Investment Norms for Mutual Funds.
2.4. SEBI Norms for Mutual Funds’ Investment in Derivatives.
2.5. SEBI Norms with respect to Changes in Controlling Interest of an AMC.
2.6. Changes in Mutual Fund Schemes.

FUND DISTRIBUTION AND SALES PRACTICES


3.1. Internet and Mobile Technologies.
3.2. Stock Exchanges.

INVESTMENT AND RISK MANAGEMENT

4.1. Fundamental Analysis.
4.2. Technical Analysis.47
4.3. Quantitative Analysis.
4.4. Debt Investment Management.
4.5. Issues for a Debt Fund Manager.
4.6. Derivatives.
4.7. Application of Derivatives.

VALUATION OF SCHEMES

5.1. Equities.
5.2. Debt.
5.3. Non‐Performing Assets (NPA) and Provisioning for NPAs.
5.4. Gold.
5.5. Real Estate Mutual Funds.

ACCOUNTING

6.1. Net Asset Value.
6.2. Investor Transactions.
6.3. Distributable Reserves.
6.4. Unique Aspects of Real Estate Schemes Accounting.

TAXATION

7.1. Taxes for AMCs.
7.2. Taxes for Investors.

INVESTOR SERVICES

8.1. New Fund Offer.
8.2. Open‐end Fund.
8.3. Closed‐end Fund.
8.4. Exchange Traded Fund.
8.5. Nomination.
8.6. Pledge.

SCHEME EVALUATION

9.1. Measures of Return.
9.2. Measures of Risk.
9.3. Benchmarks and Relative Returns.
9.4. Risk‐adjusted Returns.
9.5. Limitations of Quantitative Evaluation.

ASSET CLASSES AND ALTERNATE INVESTMENT PRODUCTS

10.1. Historical Returns.
10.2. Perspectives on Asset Class Returns.
10.3. Alternate Investment Products.

ETHICS AND INVESTOR PROTECTION

12.1. Code of Conduct.
12.2. Mis‐selling.
12.3. Safeguards in Mutual Fund Structure.
12.4. Regulatory Steps for Protecting Investors against Fraud.

NISM Mutual Fund Distributors (Level 2) Mock Test (Play And Earn):

#1. Investor can file suit against

Here the word Trust is refer to Mutual fund.

As we all know that  Mutual Fund is Trust not a company.

So as per rules, Investors have right to sue Trustees but not Trust.

#2. Mutual fund units are

All Mutual fund  are exempt for wealth tax, no exceptions.

#3. Small cap and mid cap funds turns risker during

Small cap and mid cap funds turns risker during recession and Market turmoil because market fall and rapid fluctuations affects Small and Mid cap funds more than Large cap funds as Large cap have relatively strong Fundamentals.

And in case of Low interest rate, almost all funds gets benefit from it. As companies have to pay less interest on their Debt which means more profitability of companies.

#4. One ARN number is enough to empanelled with

One ARN number is enough for Mutual fund Distributor to empanelled with any AMC.  

For instance: In India there are total 44 AMCs.

An Mutual fund Distributor  in India can empanelled with any of them with one ARN number.

 It doesn’t matter whether AMC is Sundaram Mutual Fund or L&T Mutual Fund.

#5. Movement in security prices are governed by SEBI

SEBI have no control in movement in security prices. As SEBI has no control on demand and supply so automatically have no control in fluctuations in shares.

#6. Statement of Additional Information (SAI) not contained

SID contained Scheme specific information

while SAI contained General

information about the Mutual fund.

#7. There is no difference in Gold sector fund and Gold ETF.

Gold sector funds are active funds which invest in a company who works in sector of gold.

while Gold ETF are passive funds which invest in gold itself.

#8. As per SEBI, Application form must be attached with

#9. Rematerialization is a process by which

While in case of De materialization

units in physical form are converted into electronic form.

#10. ELSS fund has

Exchange traded funds have no lock-in period as they are traded in exchange.

#11. A Mutual Fund Trust is

Mutual Fund is a Trust not a company. And AMC is managing investor’s money not their own. So they are exempt from tax.

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Results

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges.

As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Past performance of securities/instruments is not indicative of their future performance. This post is only for Educational purpose.

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