NISM Series-V-C: Mutual Fund Distributors (Level 2) Practice Exam

NISM Series-V-C: Mutual Fund Distributors (Level 2) Practice Exam

The NISM Series-V-C Mutual Fund Distributors (Level 2) Certification Examination validates your in-depth knowledge of mutual fund products and strengthens your ability to advise clients effectively. Earning this qualification demonstrates your expertise in advanced investment concepts, fund valuation methods, and regulatory aspects of mutual funds in India.

Who Should Take This Exam?

This NISM Series-V-C exam is ideal for individuals aspiring to:

• Enhance their careers as mutual fund distributors by offering sophisticated investment solutions to clients.
• Gain a deeper understanding of complex mutual fund products like Fund of Funds (FOFs), Exchange Traded Funds (ETFs), and Alternative Investment Funds (AIFs).
• Pursue specialization in areas like portfolio management or wealth advisory services.

Are There Prerequisites?

While there's no formal prerequisite for the exam, successfully passing the NISM Series-V-A Mutual Fund Distributors (Level 1) exam is highly recommended.  A strong foundation in investment fundamentals and basic knowledge of mutual funds are essential for success in the Level 2 exam.

Roles and Responsibilities 

• Senior Mutual Fund Distributor: Providing in-depth investment advice and personalized financial planning solutions to clients.
• Product Specialist: Specializing in specific mutual fund categories or investment strategies.
• Wealth Advisor: Creating comprehensive wealth management plans for clients, potentially including mutual funds as investment options.

Exam Details

• Conducted by: National Institute of Securities Markets (NISM)
• Exam Format: 100 marks, with 8 caselets (4 questions each, 2 marks per question) and 36 multiple-choice questions (1 mark each)
• Duration: 2 hours
• Negative Marking: 25% penalty for each wrong answer in multiple-choice questions.
• Passing Score: 60%

Course Outline

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
• Know how taxation affects mutual fund schemes and investors
• Understand the processes underlying investment in NFO, open-end schemes, closed-end schemes and ETF as well as nomination and pledge processes relating to mutual funds
• Appreciate how schemes are evaluated
• Get a historical perspective on returns earned in different asset classes
• Get acquainted with the issues involved in selling alternate investment products
• Get oriented to basics of financial planning
• Understand ethical requirements and measures to protect mutual fund investors