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