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 ConstituentsÂ
- 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 investorsÂ
VIII. Selecting the Right Investment products for InvestorsÂ
- 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