Specialized Investment Fund Distributors

Why this certification matters

How VIA Capital preparation works

One clear path. Built for students, and built for discipline.

1. Step 1

   Read

   Slide through the study book chapter by chapter.

2. Step 2

   Practise

   Chapter questions with answer and explanation.

3. Step 3

   Chapter tests

   Beginner and advanced tests for each chapter.

4. Step 4

   Full mock sets

   100-question papers in a real exam screen.

5. Step 5

   Review

   See every mistake and why, then improve.

Why prepare with VIA Capital

Where it takes you

1. 1Chapter 1Investment Landscape9 topics

   1. 1.1Investors and their Financial Goal.
   2. 1.2Savings and Investment.
   3. 1.3Different Asset Classes.
   4. 1.4Investment Risks.
   5. 1.5Risk Measure and Management Strategies.
   6. 1.6Behavioral Biases in Investment Decision Making.
   7. 1.7Risk Profiling.
   8. 1.8Understanding Asset Allocation.
   9. 1.9Do-it-yourself versus Taking Professional Help.
2. 2Chapter 2Concept and Role of a Mutual Fund3 topics

   1. 2.1Concept of a Mutual fund.
   2. 2.2Classification of Mutual Funds.
   3. 2.3Growth of the mutual fund industry in India.
3. 3Chapter 3Legal Structure of Mutual Funds in India5 topics

   1. 3.1Structure of Mutual Funds in India.
   2. 3.2Key Constituents of a Mutual Fund.
   3. 3.3Organization Structure of Asset Management Company.
   4. 3.4Role and Support function of Service Providers.
   5. 3.5Role and Function of AMFI.
4. 4Chapter 4Legal and Regulatory Framework5 topics

   1. 4.1Role of Regulators in India.
   2. 4.2Role of Securities and Exchange Board of India.
   3. 4.3Due Diligence Process by AMCs for Distributors of Mutual Funds.
   4. 4.4Investor Grievance Redressal Standards.
   5. 4.5AMFI Code of Conduct for Intermediaries of Mutual Funds.
5. 5Chapter 5Scheme Related Information2 topics

   1. 5.1Mandatory Documents.
   2. 5.2Non-Mandatory Disclosures.
6. 6Chapter 6Fund Distribution and Channel Management Practices10 topics

   1. 6.1The role and importance of mutual fund distributors.
   2. 6.2Different kinds of mutual fund distributors.
   3. 6.3Modes of distribution.
   4. 6.4Pre-requisites to become Distributor of a Mutual Fund.
   5. 6.5Revenue for a mutual fund distributor.
   6. 6.6Commission Disclosure mandated by SEBI.
   7. 6.7Due Diligence Process by AMCs for Distributors of Mutual Funds.
   8. 6.8Difference between distributors and Investment Advisors.
   9. 6.9Nomination facilities to Agents/Distributors and Payment of Commission to Nominee.
   10. 6.10Change of distributor.
7. 7Chapter 7Net Asset Value, Total Expense Ratio and Pricing of Units6 topics

   1. 7.1Fair Valuation Principles.
   2. 7.2Computation of Net Assets of Mutual Fund Scheme and NAV.
   3. 7.3Dividends & Distributable Reserves.
   4. 7.4Concept of Entry and Exit Load and its impact on NAV.
   5. 7.5Key Accounting and Reporting Requirements.
   6. 7.6NAV, Total expense ratio and pricing of units for the Segregated Portfolio.
8. 8Chapter 8Taxation9 topics

   1. 8.1Applicability of taxes in respect of mutual funds.
   2. 8.2Capital Gains.
   3. 8.3Dividend income.
   4. 8.4Stamp Duty on Mutual Fund Units.
   5. 8.5Setting off of Capital Gains and Losses under Income Tax Act.
   6. 8.6Securities Transaction Tax.
   7. 8.7Tax benefit under Section 80C of the Income Tax Act.
   8. 8.8Tax Deducted at Source.
   9. 8.9Applicability of GST.
9. 9Chapter 9Investor Services15 topics

   1. 9.1The NFO process.
   2. 9.2New Fund Offer Price/On-going Offer Price for subscription.
   3. 9.3Investment Plans and Services.
   4. 9.4Allotment of Units to the Investor.
   5. 9.5Account statements for investments.
   6. 9.6Mutual Fund Investors.
   7. 9.7Filling the Application Form for Mutual Funds.
   8. 9.8Financial Transactions with Mutual Funds.
   9. 9.9Cut-off Time and Time Stamping.
   10. 9.10KYC Requirements for Mutual Fund Investors.
   11. 9.11Systematic Transactions.
   12. 9.12Operational aspects of Systematic Transactions.
   13. 9.13Non-Financial Transactions in Mutual Funds.
   14. 9.14Change in Status of Special Investor Categories.
   15. 9.15Investor transactions, turnaround times.
10. 10Chapter 10Risk, Return and Performance of Funds8 topics

    1. 10.1General and Specific Risk Factors.
    2. 10.2Factors that affect mutual fund performance.
    3. 10.3Drivers of Returns and Risk in a Scheme.
    4. 10.4Measures of Returns.
    5. 10.5SEBI Norms regarding Representation of Returns by Mutual Funds in India.
    6. 10.6Risks in fund investing with a focus on investors.
    7. 10.7Measures of Risk.
    8. 10.8Certain Provisions with respect to Credit risk.
11. 11Chapter 11Mutual Fund Scheme Performance9 topics

    1. 11.1Benchmarks and Performance.
    2. 11.2Price Return Index or Total Return Index.
    3. 11.3Basis of Choosing an appropriate performance benchmark.
    4. 11.4Benchmarks for equity schemes.
    5. 11.5Benchmarks for Debt Schemes.
    6. 11.6Benchmarks for Other Schemes.
    7. 11.7Quantitative Measures of Fund Manager Performance.
    8. 11.8Tracking Error.
    9. 11.9Scheme Performance Disclosure.
12. 12Chapter 12Mutual Fund Scheme Selection6 topics

    1. 12.1Scheme Selection based on Investor needs, preference and risk-profile.
    2. 12.2Risk levels in mutual fund schemes.
    3. 12.3Scheme Selection based on investment strategy of mutual funds.
    4. 12.4Selection of Mutual Fund scheme offered by different AMCs or within the scheme category.
    5. 12.5Selecting options in mutual fund schemes.
    6. 12.6Do’s and Don’ts while selecting mutual fund schemes.
13. 13Chapter 13Basics of Derivatives6 topics

    1. 13.1Understanding Derivatives.
    2. 13.2Financial derivatives and factors influencing the growth of derivatives markets globally.
    3. 13.3Derivative Products in India.
    4. 13.4Market participants and their roles.
    5. 13.5OTC versus exchange traded markets.
    6. 13.6Importance of derivatives and the key risks faced by market participants.
14. 14Chapter 14Understanding Index6 topics

    1. 14.1Index and its economic purpose.
    2. 14.2Types of Indices and their computation.
    3. 14.3Index Construction and Impact Cost.
    4. 14.4Index Construction, Maintenance, and Revision.
    5. 14.5Equity indices in India.
    6. 14.6Applications of indices.
15. 15Chapter 15Introduction to Equity Futures and Forwards9 topics

    1. 15.1Forward Contracts: Features and Drawbacks.
    2. 15.2Futures contract: Features and Drawbacks.
    3. 15.3Contract specification of Exchange Traded Equity Futures.
    4. 15.4Futures Contract Terminology.
    5. 15.5Advantages and Disadvantages of forwards and futures.
    6. 15.6Long–Short Futures Payoffs.
    7. 15.7Cost-of-carry model and Expectations model for futures pricing.
    8. 15.8Cash–Futures Price Convergence.
    9. 15.9Uses/Applications of equity futures.
16. 16Chapter 16Introduction to Equity Options10 topics

    1. 16.1Option Contracts and Terminology.
    2. 16.2Contract specifications of Exchange Traded Equity Options contracts.
    3. 16.3Option Moneyness: ITM, ATM, OTM.
    4. 16.4Intrinsic value and Time value of Options.
    5. 16.5Payoff diagrams of call and put options.
    6. 16.6Futures versus Options Contracts.
    7. 16.7Option Pricing, Determinants and Greeks.
    8. 16.8Option Pricing Models Overview.
    9. 16.9Implied volatility and its significance.
    10. 16.10Call and Put Option Profitability.
17. 17Chapter 17Strategies Using Equity Futures and Equity Options5 topics

    1. 17.1Strategies for hedging, trading and arbitrage using equity futures.
    2. 17.2Option Trading Strategies.
    3. 17.3Put-Call Parity and Synthetic Option Strategies.
    4. 17.4Delta-hedging.
    5. 17.5Trading Strategies Using Open Interest, Volume, Futures Price and Put-Call Ratio.
18. 18Chapter 18Introduction to Interest Rate, Interest Rate Instruments and Fixed Income Market14 topics

    1. 18.1Interest Rate.
    2. 18.2Understanding Fixed Income Securities.
    3. 18.3Bond Classification by Criteria.
    4. 18.4Equity versus Debt securities.
    5. 18.5Risk-free Interest Rate.
    6. 18.6Term Structure of Interest Rates.
    7. 18.7Interest Rate Conversion Methods.
    8. 18.8Accrued Interest.
    9. 18.9Spot Rate (or zero rate) and Holding Period Return.
    10. 18.10Coupon, Current yield, Yield-to-maturity.
    11. 18.11Cash flow, Yield and Price of Bonds.
    12. 18.12Macaulay Duration, Modified Duration, Rupee Duration, Price value of a basis point (PVBP) and Convexity.
    13. 18.13Debt Markets: Role and Economic Development.
    14. 18.14Primary and Secondary Markets for Debt Securities in India.
19. 19Chapter 19Interest Rate Derivatives6 topics

    1. 19.1Derivatives and Its Economic Role.
    2. 19.2Forwards, Futures, Options and Swaps.
    3. 19.3Factors driving the growth of financial derivatives.
    4. 19.4Interest Rate Derivatives Market Players.
    5. 19.5Interest Rate Derivatives and Bond Derivatives.
    6. 19.6Over-The-Counter (OTC) versus Exchange Traded Derivatives.
20. 20Chapter 20Exchange Traded Interest Rate Futures7 topics

    1. 20.1Interest Rate Futures (IRF).
    2. 20.2Pay-Off Diagram of Futures.
    3. 20.3Interest Rate Futures Contract Specifications.
    4. 20.4Tick size and its relation to the minimum change in the contract value.
    5. 20.5Rationale for Interest Rate Derivatives.
    6. 20.6Advantages and Limitations of Futures Contracts.
    7. 20.7Interest Rate Futures Price.
21. 21Chapter 21Exchange Traded Interest Rate Options10 topics

    1. 21.1Options Contracts.
    2. 21.2Futures versus Options Contracts.
    3. 21.3European versus American options.
    4. 21.4Option Moneyness: ITM, ATM, OTM.
    5. 21.5Option Pricing Factors and Greeks.
    6. 21.6Models for Options Pricing.
    7. 21.7Implied Volatility.
    8. 21.8Payoff Diagrams of Put Options and Call Options.
    9. 21.9Contract Specifications for Interest Rate Options Contracts.
    10. 21.10Advantages and Limitations of Exchange Traded Options Contracts.
22. 22Chapter 22Strategies Using Exchange Traded Interest Rate Futures and Options7 topics

    1. 22.1Hedgers, Speculators and Arbitrageurs in Interest Rate Derivatives Markets.
    2. 22.2Interest Rate Derivatives for Hedging.
    3. 22.3Option Trading Strategies and their Payoff Diagrams.
    4. 22.4Interest Rate Derivatives for speculative transactions (trading).
    5. 22.5Interest Rate Derivatives Arbitrage Trades.
    6. 22.6Spread and Spread Trading.
    7. 22.7Limitations of Interest Rate Derivatives for Hedgers.

Source: NISM curriculum page. Chapter names and order follow NISM; sub-topic numbering (1.1, 1.2) is added by VIA Capital for easy reading. NISM may revise its curriculum; always confirm on nism.ac.in.

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