The task of a mutual fund distributor is to analyse the investors' financial needs and risk profile, guiding them to make the right investment decisions. Investors trust distributors with their hard-earned money in the hope of growth in their wealth. Thus, the job of a distributor is extremely crucial, requiring a high standard of knowledge and ethics.
Understanding the importance of the role of a mutual fund distributor, SEBI has mandated that anyone whoaspires to become a mutual fund distributor, including individuals, employees of asset management companies, and employees of other organisations involved in the sale and distribution of mutual funds, must clear a certification exam.
This certification course is conducted by the National Institute of Securities Markets (NISM) and is called the NISM Series V-A Mutual Fund Distributors Certification Examination. The aim of this is to assess the knowledge and skills of individuals who wish to sell and distribute mutual funds in India. Through this examination, distributors can enhance the quality of their sales and distribution.
NISM V-A Exam Details
The course covers everything a mutual fund distributor would require to know to conduct a successful business, such as -
- The basics of mutual funds - features, structure, and types
- The regulatory rules that need to be followed
- The legal, accounting, and taxation practices of mutual funds
- The process of evaluating mutual fund schemes and recommending suitable schemes to investors
- Understanding financial planning as an approach to mutual fund investing
- An understanding of how mutual funds are distributed in the market-place
- The ethical business standards that mutual fund distributors are required to follow
With this, mutual fund distributors can gain ample knowledge and apply it in real-world situations, leading their clients to financial prosperity. Here are some details about the examination to give you a clear perspective.
| Total Questions | 100 |
| Question type | Multiple-choice (MCQ) |
| Exam duration | 2 hours |
| Fee | Rs 1500+ |
| Negative Marking | Nil |
| Maximum marks | 100 |
| Passing (%) | 50% |
| Weightage for each question | Equal weightage |
| Certificate validity | 3 years |
To give the NISM V-A exam, one must first register with NISM. This can be done online through their website. After registration, one can book a suitable slot and location for the exam. This exam is conducted in 150+ cities in India, making it convenient for all exam takers. To register, click here.
Tips to Clear the NISM V-A Exam
- Start early - To appear for any exam, it is important to start preparing early and be consistent. Since the exam contains a wide range of topics, it is recommended to start at least a month prior.
- Prepare a study schedule - The right approach to preparing for any kind of examination would be to create a roadmap on how to approach the syllabus. With a proper schedule, one can give ample time to each topic and track their progress.
- Thorough knowledge of the study material - One can download the study material from the NISM website, which is free of cost. The study material is available in both English and Hindi.
- Solve practice questions - By solving practice questions, one can get an understanding of how to apply their knowledge when asked in question format.
- Solve mock test - Solving a mock test is the best way to see whether you can finish the examination with time efficiently. Moreover, you can also track your performance and identify your strengths, giving you an opportunity to work on your weaknesses.
Conclusion
There is no eligibility requirement to take the NISM exam. However, one needs to attainthe age of 18 to start the distribution practice. Proper preparation and following the above tips can make your journey to clearing the exam and becoming a mutual fund distributor seamless.
