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Mutual Fund Distributors (Level 2) Certification Examination is suitable for: 

  • 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

 

Examination Objectives

On successful completion of the examination the candidate should:

  • Understand the salient features of Fund of Funds, Exchange Traded Funds, Real Estate Mutual Funds, Venture Capital Funds, Private Equity Funds and International Funds
  • Know the legalities of real estate mutual funds, investment restrictions applicable to mutual fund schemes, and the processes for making changes in the structure of a mutual fund or any of its schemes
  • Appreciate the working of newer channels of distribution viz. stock exchange and internet
  • Get acquainted with the approaches fund managers take to manage investments and associated risks
  • Understand how equities, debt, derivatives and real estate are valued in mutual fund schemes
  • Get oriented to the accounting aspects of NAV determination, investor’s transactions with the fund and corporate actions by investee companies

 

NISM Mutual Fund Distributors (Level-2) Syllabus

 

I. Mutual Fund Structures

A. Fund of Funds

B. Exchange Traded Funds

C. Real Estate Mutual Funds

D. Venture Capital Funds

E. Private Equity Funds

F. International funds

II. Legal and Regulatory Environment of Mutual Funds

A. Regulatory Framework for Real Estate Mutual Funds

B. Investment Norms for Mutual Funds

C. SEBI Norms for Mutual Funds’ investment in Derivatives

D. SEBI norms with respect to change in controlling interest of an AMC

E. Changes in Mutual Fund Schemes

III. Fund Distribution and Sales Practices

A. Internet and Mobile Technologies

B. Stock Exchanges

IV. Investment and Risk Management

A. Fundamental Analysis

B. Technical Analysis

C. Quantitative Analysis

D. Debt Investment Management

E. Issues for a Debt Fund Manager

F. Derivatives

G. Application of Derivatives

V. Valuation of Schemes

A. Equities

B. Debt

C. Non-Performing Assets and Provisioning for NPAs

D. Gold

E. Real Estate

VI. Accounting

A. Net Asset Value

B. Investor Transactions

C. Distributable Reserves

D. Unique Aspects of Real Estate Schemes Accounting

VII. Taxation

A. Taxes for AMCs: Securities Transaction Tax and Income Distribution Tax

B. Taxes for Investors: Securities Transaction Tax, Taxes on Dividend, Capital Gains, Set-off

and Carry Forward of Losses, Dividend Stripping and Bonus Stripping.

VIII. Investor Services

A. New Fund Offer

B. Open-end Fund

C. Closed-end Fund

D. Exchange Traded Fund

E. Nomination and Pledge

IX. Scheme Evaluation

A. Measures of Return

B. Measures of Risk

C. Benchmarks and Relative Returns

D. Risk-adjusted Returns

E. Limitations of Quantitative Evaluation

X. Asset Classes and Alternate Investment Products

A. Historical Returns

B. Perspectives on Asset Class Returns

C. Alternative Investment Products

XI. Cases in Financial Planning

A. Practical Aspects of Financial Planning (cases/examples)

XII. Ethics and Investor Protection

A. Code of Conduct

B. Mis-selling

C. Safeguards in Mutual Fund Structure

D. Regulatory Steps for Protecting Investors Against Fraud