All About NISM Certificates Exam
NISM-Series-V-A: Mutual Fund Distributors Certification Examination (NISM Exam) is organized by National Institute of Securities Market. Only after clearing the NISM Certification exam, the prospect gets the ARN Number and becomes a Mutual Fund Agent. The NISM Exam seeks to construct a common minimum knowledge standard for all candidates involved in Mutual Funds sales and distribution, including the Individual Mutual Fund Distributors, Employees of organizations engaged in sales and distribution of Mutual Funds and the Employees of Asset Management Companies (AMC), especially people engaged in Mutual Funds sales and distribution. The certification intends to augment the sales quality, distribution, and related support services in the industry.
Key Highlights
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 a mutual fund distributor / advisor.
- There is no educational qualification listed as per the Association of Mutual Fund (AMFI) website.
- If you are looking to enter the mutual fund distribution 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 mutual fund distributor 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 mutual fund advisors.
- The AMFI certification ensures compliance with industry regulations.
- Helps in building credibility and trust among clients.
If you are wondering what is NISM certification, it is a qualification that allows individuals to become certified professionals in the mutual fund industry. Clearing the mutual fund exam is the first step toward becoming a financial expert.
Mode to Appear in the NISM Mutual Fund Distributor Exam:
- Based on the details provided by the Association of Mutual Funds in India (AMFI), the NISM Mutual Fund Distributor 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.
Steps to Get NISM Certification
- Register for the NISM exam on the official portal.
- Select the NISM certificate course relevant to mutual fund distribution.
- 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 mutual fund advisor. The AMFI certification ensures compliance with industry standards. For those asking how to get NISM certificate, the process involves NISM register, choosing the exam mode, and successfully passing the test.
How Much NISM Exam Fee to be submitted?
While getting the NISM registration done for the NISM Mutual Fund Distributor Exam, a person needs to pay an amount of Rs.1,500/- as NISM exam fees.
The mode to pay the fee will be online through Credit Card/Debit Card or Net Banking.
To appear for the NISM certification exam, candidates must first NISM register and proceed with NISM login to schedule their exam.
How to attempt the NISM Mutual Fund Distribution Exam online:
- Become a member on the official website of NISM.
- Get your NISM login done.
- Choose the NISM-Series-V-A module.
- Choose your desired exam date, time, and online test center option
- Pay for exam fees and confirm the booking.
This web-based flexible mode assists the candidates to get their NISM certification in an easy and speedy manner and start their career as certified Mutual Fund Distributors.
What is the Validity for a NISM Certificate?
As per the NISM Exam details available at the Association of Mutual Fund (AMFI) website, the NISM certificate examination is valid for around 3 years.
To continue as a mutual fund distributor, individuals must renew their NISM certification exam before the validity expires.
- Register for the NISM exam before your certificate expires.
- Complete the NISM registration process on the official website.
- Log in using your NISM login credentials.
- Choose the required NISM certificate course for renewal.
- Pass the mutual fund exam to extend the validity of your certification.
For those wondering what is NISM certification, it is a qualification required to work as a certified mutual fund distributor. The AMFI certification ensures compliance with industry regulations. If you are looking for how to get NISM certificate, you must complete the exam process and obtain the NISM mutual fund certification.
NISM Exam Pattern:
The NISM Exam follows a structured pattern for candidates appearing in the mutual fund distributor exam. Below are the key details:
- There will be 100 questions in the examination
- Each question carries 1 mark (Maximum marks: 100).
- To qualify, candidates must score at least 50% marks.
- There is no negative marking in the NISM certification exam.
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.
If you are wondering what is NISM certification, it is a mandatory qualification for mutual fund distributors. The AMFI certification ensures compliance with industry standards.
For those searching how to get NISM certificate, the process starts with NISM register, selecting the exam, and passing with the required marks.
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 Exam?
To complete the NISM certification registration, follow these steps:
- NISM Register – Visit the official website and click on the ‘New Account’ option.
- NISM Registration – Complete your profile by providing necessary details. A scanned copy of a passport-size photo, Aadhaar Card, and PAN Card in JPG format is required.
- Your profile gets approved within 3 days after the NISM exam registration and verification.
- NISM Login – Once approved, log in to book the NISM certificate examination (Series V-A), available in both Hindi and English.
- Booking involves selecting:
- City or ‘Online’ if you want to take the mutual fund distributor exam from home.
- Preferred time slot.
- Payment of Rs.1,500.
- The NISM mutual fund workbook will be available in the portal. Download and study for the NISM certification exam.
- After clearing the mutual fund exam, you need to apply for ARN.
Why is NISM Certification important?
- NISM certification is a regulatory prerequisite for Indian mutual fund distributors.
- It is accepted by SEBI and awarded by the National Institute of Securities Market (NISM), hence complying with the regulator.
- The NISM certificate assists in gaining credibility and trust from clients as well as employers.
- The NISM certification exam increases your understanding of mutual fund products, regulation, taxation, and servicing of investors.
- It provides career opportunities with AMCs (Asset Management Companies), banks, and mutual fund advisory firms.
- NISM mutual fund distribution examination prescribes minimum knowledge requirements for the mutual fund industry.
- You get certified as an ARN (AMFI Registration Number) to distribute mutual funds by clearing the NISM certification examination.
- How to become NISM certified? Just register on the official NISM website, study with the study material, and clear the NISM-Series-V-A exam.
- The certification is promoting professional growth and is generally a prerequisite for wealth management and financial planning jobs. Having a fresh NISM certification also improves your prospects of receiving good client interaction and additional commissions.
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.
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 – 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
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):
1. What is the Regulation Over Using Electrical Items Like a Calculator in the NISM Examination?
Using the calculator or any other electronic item in the NISM examination hall is strictly prohibited.
2. What if a Candidate Fails in the NISM examination? Is there any Refund Policy?
No, there is no procedure for fee refund. But yes, if the exam gets cancelled by the NISM, then a refund will be given to the candidate.
3. How can the fees for nism certification for mutual fund distributors be paid?
The NISM exam exam fees can easily be paid through online mode by using a debit card, net banking. Exam NISM certification fees fees can also be submitted through offline mode by using the demand Drafts.
4. Is it Possible to Give the NISM Exam in the Hindi language?
Yes, a prospect can give the examination in the Hindi language. However, the exam will be conducted in offline mode only in case of Hindi.
5. What is the Scope of the NISM certificate?
NISM certificate is essential for the mutual fund distributors to get the ARN number.