NISM Series V-A: Mutual Fund Distributors

NISM Series V-A: Mutual Fund Distributors is the SEBI-recognised qualifying examination for individuals seeking the ARN (AMFI Registration Number) to distribute mutual fund schemes in India. Administered by the National Institute of Securities Markets (NISM) , V-A is the entry-level examination in the broader Series V family and is the mandatory credentialing step before any individual can be issued an ARN.

For aspiring mutual fund distributors, V-A is the prerequisite gate. Without V-A, an applicant cannot proceed to KYD or ARN issuance.

Examination format

• Duration: 90 minutes.
• Number of questions: 100 (multiple-choice; 1 mark each).
• Pass mark: 50% (50 out of 100).
• Negative marking: 0.25 marks per incorrect answer.
• Languages: English, Hindi, and several regional languages.
• Mode: Online proctored at NISM-empanelled examination centres.

Syllabus areas

The V-A curriculum covers:

Unit 1: Introduction to mutual funds (10%)

• Concept of mutual funds, NAV , AUM .
• Open vs close-ended schemes.
• Categorisation per SEBI October 2017 framework .

Unit 2: Fund structure (8%)

• Trust structure : sponsor, trustee, AMC, custodian.
• Role of RTA and valuation agencies .

Unit 3: Investment products (15%)

• Equity, debt, hybrid, ETF, FoF, ELSS, balanced advantage, multi-asset.
• Index funds , thematic funds .

Unit 4: Investor categories (8%)

• Individual, HUF, NRI, NRO, NRE, PMS , corporate, trust.

Unit 5: Investment plans (8%)

• SIP , SWP , STP , lump sum , flex SIP .

Unit 6: NAV and applicable NAV (5%)

• NAV computation .
• Applicable NAV / cut-off rule .

Unit 7: Performance measurement (10%)

• Trailing returns, point-to-point returns, XIRR .
• Sharpe ratio , Sortino ratio , Treynor ratio , alpha , beta , r-squared .
• TRI benchmarking .

Unit 8: Risk and reward (8%)

• AMFI Risk-O-Meter .
• Standard deviation, volatility, drawdowns.
• Credit quality buckets .

Unit 9: Taxation (10%)

• Equity MF taxation per Sections 112A and 111A .
• Debt MF taxation post-2023 .
• Section 194K on dividend TDS.
• Section 80C and ELSS.

Unit 10: Selling and servicing (10%)

• Need-based selling.
• KYC, eKYC , CKYC .
• Application processing.

Unit 11: Investor protection (8%)

• AMFI Code of Ethics .
• AMFI Best Practice Guidelines .
• Grievance redressal .
• SCORES .

Registration process

1. Online registration: NISM portal (nism.ac.in).
2. Fee payment: Approximately Rs 1,500 (subject to NISM fee schedule).
3. Schedule examination: Pick a date and an NISM-empanelled centre.
4. Study materials: NISM provides a downloadable study workbook.

Re-certification

Per AMFI rules, V-A certification has 3-year validity. Renewal options:

• Re-sit V-A: Pass the exam again.
• CPE credits: Accumulate Continuing Professional Education credits over the 3-year period.

See also

• Mutual funds in India
• NISM Series V
• NISM Series V-B
• NISM Series V-C
• NISM passing criteria
• ARN
• KYD (mutual funds)
• EUIN
• AMFI
• CPE credits (AMFI)
• AMFI Risk-O-Meter
• AMFI Code of Ethics

External references

• NISM India
• AMFI India
• SEBI

References

1. NISM Series V-A workbook and curriculum.
2. AMFI ARN guidelines.
3. SEBI master circular on certification of intermediaries.