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NISM VA Summary Concepts 2025

The document outlines key concepts for the NISM Series V-A Mutual Fund Distributors Exam, covering investment landscape, mutual fund roles, legal frameworks, and taxation. It emphasizes the importance of risk profiling, asset allocation, and understanding fund types and performance metrics. Additionally, it highlights essential investor services and the regulatory roles of SEBI and AMFI.

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guptavanshit2004
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552 views3 pages

NISM VA Summary Concepts 2025

The document outlines key concepts for the NISM Series V-A Mutual Fund Distributors Exam, covering investment landscape, mutual fund roles, legal frameworks, and taxation. It emphasizes the importance of risk profiling, asset allocation, and understanding fund types and performance metrics. Additionally, it highlights essential investor services and the regulatory roles of SEBI and AMFI.

Uploaded by

guptavanshit2004
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

NISM Series V-A: Mutual Fund Distributors Exam - Summary & Concepts

1. Investment Landscape

- Identify investor goals: short, medium, long term

- Understand asset classes: Equity, Debt, Real Estate, Commodities

- Know risks: Inflation, Market, Interest Rate, Liquidity, Credit

- Behavioral biases: herd mentality, overconfidence, loss aversion

- Risk profiling: ability, willingness, need to take risk

- Asset allocation: Strategic vs Tactical, Rebalancing

2. Mutual Fund Concept & Role

- Mutual fund: pool of money managed by professionals

- Benefits: diversification, liquidity, affordability

- Types: Equity, Debt, Hybrid, Index, Thematic

- NAV: Net Asset Value = (Assets - Liabilities) / Units

3 & 4. Legal & Regulatory Framework

- Structure: Sponsor, AMC, Trustee, Custodian

- Regulators: SEBI (rules), AMFI (self-regulatory)

- AMFI Code of Conduct: mandatory for distributors

5. Scheme Related Info

- Mandatory docs: SID (detailed), KIM (summary)

- Important scheme details: objective, loads, past performance

6. Fund Distribution

- Distributors earn commissions

- RIAs offer advice, fee-based

- SEBI mandates commission disclosure


NISM Series V-A: Mutual Fund Distributors Exam - Summary & Concepts

7. NAV & Expenses

- NAV calculation is crucial

- TER: Total Expense Ratio impacts investor returns

- Load: Entry (mostly removed), Exit load applies

8. Taxation

- Equity: STCG 15%, LTCG 10% above Rs.1L

- Debt: STCG (slab), LTCG 20% with indexation

- IDCW taxed in investor's hands

- ELSS eligible under Section 80C

9. Investor Services

- NFO, SIP, SWP, STP: various plans

- KYC mandatory, Cut-off time determines NAV

- Transactions: financial (buy/sell) & non-financial (change nominee, etc.)

10. Risk & Performance

- Return metrics: CAGR, XIRR

- Risk metrics: Standard Deviation, Beta, Sharpe Ratio

- SEBI return disclosure norms

11. Scheme Performance

- Benchmarks: PR, TRI

- Tracking error for index funds

- Compare with appropriate index

12. Scheme Selection

- Match to investor goal, risk, horizon


NISM Series V-A: Mutual Fund Distributors Exam - Summary & Concepts

- Evaluate: past return, risk, AMC reputation, TER

- Do's: consistent performer, match risk profile

- Don'ts: chase recent returns blindly

Top 10 Must Know Concepts

1. NAV & Expense Ratio

2. Asset Allocation & Rebalancing

3. Tax Rules (STCG, LTCG, 80C)

4. Fund Types (Equity, Debt, Hybrid, Index)

5. SEBI vs AMFI Roles

6. Risk Profiling

7. Cut-off Timings

8. SID vs KIM

9. Return Measures: CAGR, XIRR

10. Sharpe Ratio, Alpha, Beta

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