NISM MUTUAL FUND FOUNDATION COURSE

I. Concept and Role of a Mutual Fund

• Concept of a mutual fund
• Advantages and limitations of mutual fund
• List different types of funds

II. Fund Structure and Constituents 

• Legal structure of mutual funds in India
• Role of Trustee, Sponsor and AMC
• Other Service Providers and their functions

III. Legal and Regulatory Environment

• Role of the regulators in Mutual Fund Industry
• Know the salient features of the AMFI Code of Ethics and AMFI Guidelines & Norms for Intermediaries (AGNI)
• Know the Investor rights and obligations

IV. Offer Document

• Know the process of New Fund Offer (NFO)
• Know the Investment Objective, Investment Policy and Investment Strategy
• Know the regulatory aspects of an offer document
• Know the salient features of Scheme Information Document (SID), Statement of Additional Information (SAI) and Key Information Memorandum (KIM)

V. Fund Distribution and Sales Practices

• Know the various distribution channels for mutual funds
• Know the pre-requisites for becoming a mutual fund distributor
• Know the elements covered in an agreement between a distributor and a mutual fund
• Know the sales practices and commission structure

VI. Mutual Fund Products

• Product features of diversified equity schemes, fixed maturity plans and index schemes
• Features of SEBI regulations on Risk disclosures and Return presentations
• Fact sheet and their uses

VII. Investor Services

• Know the process of purchase transactions
• Know the processes of redemptions by investors
• Know the processes relating to systematic investment plans
• Know the processing relating to systematic withdrawals and transfers
• Know the other investor services and facilities offered by mutual funds.
• Know the contents and periodicity of Statement of account to the investor
• Explain the process for Nomination and Pledge
• Know the service standards mandated for a mutual fund towards its investors 

VIII. Selecting the Right Investment products for Investors 

• Analyzing needs and profile of the client
• Identifying the ideal Mutual Fund product for investors

IX. Helping Investors with Financial Planning

• Need for Financial Planning
• Role of different asset classes and allocation
• Basics steps of financial planning