NISM has recently introduced the MFD Level-2 certification. This is a voluntary certification that mutual fund distributors can take, to assess their knowledge on more advanced MF sales and fund management aspects, as compared to the mandatory MFD. Read on to understand more about this new certification, about why you may want to take it and about how Wealth Academy will help you prepare for and successfully take this certification exam, and get ahead.

MFD-Level 2 appears to be the starting point in a long standing desire that AMFI and NISM have had, to introduce various levels of certification for MF professionals, and over time, to link products that can be sold by distributors with the level of certification they possess. At this point of time, the only such linkage that exists is the distinction between the new cadre of distributors who are required to pass the Foundation course and sell only simple products and the regular AMFI certified ARN holders who are required to pass MFD and can sell all MF products. It remains to be seen whether SEBI may at some stage link sale of complex products like AIFs, PMS schemes etc, with higher levels of certifications like MFD - Level 2 or higher levels that it may introduce over time.

For now, MFD-Level 2 is purely voluntary and can be taken by any distributor with a view to either assess for himself his competencies and knowledge on these slightly more advanced topics, or to showcase to his clients that as a Level 2 certified distributor, he is a cut above the others in terms of knowledge and expertise.

Given below is a set of FAQs on this certification. Wealth Academy will help you prepare for this certification by offering you a Quick N Easy Guide exactly as we have done for MFD Level 1 and CPFA. In the coming weeks, we will be hosting comprehensive question banks chapter wise for the entire syllabus, to enable you to prepare quickly and confidently take this certification exam.

Q: What is NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination?

A: NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination is a voluntary examination recently announced by National Institute of Securities Markets (NISM) which is an educational trust set up by SEBI. This certification is meant for those candidates who wish to assess their expertise in mutual funds sales, distribution and advisory functions at a higher level. The details of MFD Level 2 are available at the following link:

http://www.nism.ac.in/index.php?option=com_content&view=article&id=436&Itemid=354

Q: Who can appear for the NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination?

A: The NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination is suitable for:

• Mutual fund distributors and agents

• Persons employed or engaged in the sale and/or distribution of mutual fund products

• Persons to be employed or engaged in the sale and/or distribution of mutual fund products

• Students interested in gaining advanced knowledge of mutual fund products, sales, distribution and related regulations

Q: Why should I obtain NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification?

A: The examination seeks to create a common knowledge benchmark for associated persons, i.e., distributors, agents or any persons employed or engaged or to be employed or engaged in the sale and/or distribution of mutual fund products and advisory functions, in order to enable a better understanding of features of advanced mutual fund products, fund valuation, fund performance measurements, investor service and related regulations.

NISM has specified the NISM-Series-V-A: Mutual Fund Distributors Certification Examination as the mandated certification examination for distributors, agents or any persons employed or engaged or to be employed or engaged in the sale and/or distribution of mutual fund products.

NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification is a higher level examination for those candidates who wish to assess themselves against higher standards of overall expertise related to mutual funds sales, distribution and advisory functions.

Q: What are the learning objectives of NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification?

A: 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

Q: How do I get the certification and what is the assessment structure?

A: The candidate is required to pass a 2 hour examination with at least 60 marks in order to receive the certification.

The examination consists of 8 caselets with 4 multiple choice questions of 2 marks each per caselet and 36 one mark multiple choice questions adding up to 100 marks. The examination should be completed in 2 hours. There is negative marking of 25% of the marks assigned to a question. The passing score for the examination is 60 marks.

Only the candidates who have produced their Income Tax Permanent Account Number (PAN) during registration would receive the NISM Certificate within two weeks of appearing for the examination.

Candidates who produced other identification proofs would not receive the NISM certificate. They would receive only the temporary mark sheet at the end of the examination.

Q: What is the syllabus outline and topic wise weight for NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification examination?

A:

Q: How can I prepare for the exam?

A: The candidate will receive a soft copy of the workbook/study material free of cost after enrolment for the examination. However, if the candidate wants to purchase a hardcopy of the workbook, he may contact Printography Systems (India) Private Limited at Address: Printography Systems (India) Private Limited. 13/D, Kurla Industrial Estate, Nari seva sadan road, Narayan Nagar, Ghatkopar (West), Mumbai- 400086 Tel No.: 02233545858, Mobile No.: +919820912814 Email Address: books_nism@psipl.net and Web Address: www.psipl.net

Wealth Academy will help you prepare for this certification exam with a Quick N Easy guide, just like we help you prepare for the MFD and CPFA certifications. We will be offering you exhaustive question banks for each chapter, which you can answer at your convenience and then check for yourself immediately how you have fared, which questions you didn't answer correctly and what are the correct answers for these questions. In this manner, you will be able to comprehensively and confidently prepare yourself to take this certification exam, successfully.

Q: How can I register for NISM-Series-V-C: Mutual Fund Distributors (Level 2) Certification Examination?

A: Candidates can register with any of the following Test Administrators.

• National Institute of Securities Markets (NISM)

• National Stock Exchange (NSE)

For registrations candidates can visit any of the above websites.

After successful registration, candidates can select a test centre, date and time slot of their choice on the Test Administrator website. Candidates are required to follow further instructions available on the Test Administrator websites.

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