NISM-Series-V-A Mutual Fund Distributors Cheat Sheet

Investment Landscape

8% of exam
Financial goals Asset classes Investment risks Behavioral biases Risk profiling Asset allocation

Mutual Fund Concepts

6% of exam
Pooling Scheme objectives Fund structures Portfolio styles Scheme categories Industry growth

Legal Structure

4% of exam
Sponsor Trustees AMC Custodian Service providers AMFI

Legal and Regulatory Framework

10% of exam
SEBI oversight Investment restrictions Advertisement code Investor rights Distributor diligence SCORES

Scheme Information

10% of exam
SID SAI KIM Addenda NAV disclosure Portfolio disclosure

Fund Distribution

6% of exam
Distribution channels Empanelment Trail commission Commission disclosure Due diligence Role boundaries

NAV, Expenses, and Pricing

8% of exam
Fair valuation Net assets NAV Mark-to-market Expense ratio Exit load

Taxation

4% of exam
Capital gains IDCW taxation Stamp duty Loss set-off TDS GST

Investor Services

15% of exam
NFO process Plans and options KYC Transactions Systematic facilities Non-financial requests

Risk, Return, and Performance

7% of exam
Return measures Equity risks Debt risks Standard deviation Beta Modified duration

Scheme Performance

7% of exam
Benchmarks PRI TRI Sharpe ratio Alpha Tracking error

Scheme Selection

15% of exam
Investor needs Risk profile Strategy fit Peer comparison Option selection Selection discipline

Quick Facts

Format Computer-based MCQs
Questions 100
Marks 100
Time 120 minutes
Passing score 50%
Negative marking None
Exam fee ₹1,500 (August 2026)
Gateway charges Extra
Certificate validity 3 years from examination date
Certificate requirement PAN updated

Saving vs Investing IN

Saving

Capital accessibility focus
Usually lower volatility
Near-term needs

Investing

Growth or income focus
Accepts investment risk
Goal-based horizon
Liquidity now vs future growth

Goals, Assets, and Risks IN

Financial goal Amount plus target date
Time horizon Time available before goal
Inflation risk Purchasing power erodes
Liquidity risk Exit may be difficult
Credit risk Issuer may default
Market risk Broad prices may fall
Interest-rate risk Rates and bond prices move inversely
Risk profiling Capacity plus willingness
Asset allocation Spread across asset classes
Diversification Reduce concentration risk
Behavioral bias Judgment distorts decisions
Professional help May add expertise and discipline

Open-ended vs Closed-ended MU

Open-ended

Ongoing subscriptions
Ongoing redemptions
No fixed maturity

Closed-ended

NFO subscription window
Fixed maturity
Exchange liquidity possible
Continuous access vs fixed tenure

Fund Concepts and Types MU

Mutual fund Pools investor money
Unit Proportional scheme ownership
Scheme objective Defines intended outcome
Investment policy Guides portfolio construction
Open-ended Normally open for purchase and redemption
Closed-ended Specified maturity
Active management Manager selects holdings
Passive management Tracks chosen index
Equity scheme Primarily equity exposure
Debt scheme Primarily fixed-income exposure
Hybrid scheme Mixes asset classes
Smart beta Rules-based factor strategy

Fund Structure LE

Sponsor | Trustees | AMC | Custodian
Sponsor establishes Trustees oversee AMC manages Custodian safeguards

Sponsor vs Trustees LE

Sponsor

Establishes fund
Appoints trustees
Meets eligibility requirements

Trustees

Oversee AMC
Protect investors
Monitor compliance
Creates fund vs oversees management

Mutual Fund Ecosystem LE

Sponsor Establishes mutual fund
Trustees Protect investor interests
Trust Legal structure for unit-holder assets
AMC Manages scheme investments
Custodian Safekeeps portfolio assets
Fund accountant Computes accounts and NAV
RTA Maintains investor records
Auditor Checks financial reporting
KRA Maintains KYC records
Depository Holds dematerialized units
Rating agency Assesses credit quality
AMFI Mutual fund industry association

Exam Numbers RE

100 Questions | 120 Minutes | 50 Marks
50% to pass Zero negative marking

Rules, Rights, and Redressal RE

SEBI Securities market regulator
SEBI MF Regulations 2026 framework effective April 2026
Investment limits Control portfolio concentration
Diversification norms Spread scheme exposures
Advertisement code Controls promotional claims
Investor rights Entitlements under scheme documents
Investor obligations Provide accurate compliant information
SCORES SEBI grievance platform
Distributor diligence AMC checks distributor conduct
Code of ethics Fair investor-focused behavior
Code of conduct Intermediary practice standards

Scheme Documents SC

SID Scheme | SAI Fund | KIM Summary
SID: specific SAI: shared KIM: key

SID vs SAI SC

SID

Scheme-specific
Objectives and risks
Fees and operations

SAI

Fund-wide
Legal information
Common operational details
Scheme details vs fund details

Choose a Scheme Document SC

Scheme terms needed → Read SID
Fund-wide details needed → Read SAI
Quick summary needed → Read KIM
Recent change suspected → Read addendum
Current holdings needed → Read portfolio disclosure
Performance snapshot needed → Read factsheet

Documents and Disclosures SC

SID Scheme-specific terms and risks
SAI Fund-wide statutory information
KIM Concise scheme summary
Addendum Updates published documents
Daily NAV Daily unit-value disclosure
TER disclosure Published scheme expense ratio
Scheme dashboard Website scheme snapshot
Portfolio disclosure Shows scheme holdings
Financial results Reports scheme finances
Annual report Yearly scheme reporting
Factsheet Periodic performance snapshot

Distributor vs Adviser FU

Distributor

Facilitates distribution
May earn commission
Discloses role

Adviser

Provides regulated advice
Follows advisory framework
Manages conflicts
Distribution role vs advisory role

Distribution Practice FU

Distributor Facilitates scheme distribution
Empanelment AMC authorizes distributor
ARN Identifies registered distributor
EUIN Identifies interacting salesperson
Trail commission Ongoing asset-linked payment
Transaction charge Permitted on eligible subscriptions
Commission disclosure Reveals distributor compensation
MFU Shared transaction utility
Online platform Digital distribution channel
Execution-only Implements investor instruction
Investment adviser Provides regulated advice
Distributor change Investor changes servicing intermediary

NAV Formula NA

NAV = Net Assets / Units
Assets minus liabilities Divide by units

NAV, Expenses, and Loads NA

Fair valuation Values assets consistently
Net assets Assets minus liabilities
NAV Net assets per unit
Mark-to-market Revalue using current prices
TER Annual operating expense ratio
Expense impact Costs reduce investor return
Exit load Charge on qualifying exit
Sale price Applicable NAV; no entry load
Repurchase price Applicable NAV less exit load
Distributable reserves Support IDCW subject to rules
Segregated portfolio Separates stressed credit asset
Unit pricing Net amount divided by applicable NAV

Tax Building Blocks TA

Capital gain Consideration less allowable cost
Holding period Classifies gain treatment
Indexation Historical relief; verify current eligibility
IDCW income Taxable investor income
Stamp duty Applies to eligible unit allotments
Loss set-off Offsets eligible capital gains
TDS Withholding, not final tax
STT Applies to specified equity-fund transactions
ELSS deduction s.80C → s.123/Schedule XV (2026)
GST Applies to taxable services
Tax treatment Year, fund type, regime, investor status

Three Systematic S's IN

SIP Invest | SWP Withdraw | STP Transfer
I = invest W = withdraw T = transfer

Direct vs Regular Plans IN

Direct

No distributor commission
Usually lower TER
Separate NAV

Regular

Distributor involved
Distribution cost included
Separate NAV
Same portfolio, different expenses

Choose a Transaction IN

Invest periodically → Use SIP
Withdraw periodically → Use SWP
Transfer periodically → Use STP
Move once → Use switch
Exit for cash → Use redemption
Change records → Use non-financial request

Transactions and Servicing IN

NFO Initial scheme subscription period
NFO price Offer price, not cheapness
Ongoing price NAV-based transaction price
Direct plan No distributor commission
Regular plan Includes distribution expenses
Growth option Returns remain invested
IDCW payout Pays declared distribution
IDCW reinvestment Reinvests declared distribution
Purchase Money buys scheme units
Redemption Units return money
Switch Exit plus purchase between choices
SIP Periodic investment instruction
SWP Periodic unit redemption
STP Periodic inter-scheme transfer
Cut-off time Helps determine applicable NAV
Funds availability Realization affects purchase NAV
Time stamp Records application receipt
KYC Verifies investor identity
FATCA/CRS Captures tax residency
Nomination Names eligible recipient
Transmission Transfers deceased holder units
Pledge Creates lien on units
Demat Electronic unit holding

SIP vs STP IN

SIP

External money invested
Periodic purchases
Builds units

STP

Money moves internally
Periodic scheme transfer
Requires source scheme
Fresh investing vs internal transfer

Standard Deviation vs Beta RI

Standard deviation

Total volatility
Standalone dispersion
Higher means wider swings

Beta

Benchmark sensitivity
Relative market movement
Needs relevant benchmark
Total risk vs market sensitivity

Choose a Risk Metric RI

Total volatility asked → Use standard deviation
Market sensitivity asked → Use beta
Rate sensitivity asked → Use modified duration
Maturity profile asked → Use WAM
Credit quality asked → Use credit ratings
Index consistency asked → Use tracking error

Returns, Risks, and Measures RI

Simple return One-period percentage change
Annualized return Return expressed yearly
Compounded return Includes return-on-return
CAGR Smoothed annual growth rate
Systematic risk Market-wide, not diversifiable
Specific risk Issuer-specific, diversifiable
Variance Squared return dispersion
Standard deviation Total return volatility
Beta Benchmark sensitivity
Modified duration Interest-rate sensitivity estimate
WAM Average portfolio maturity
Credit rating Credit-risk opinion
Gating Restricts redemptions in permitted cases
Side pocketing Segregates stressed credit assets

PRI vs TRI SC

PRI

Price changes only
Excludes distributions
Lower return basis

TRI

Includes distributions
Assumes reinvestment
Fuller comparison basis
Price only vs total return

Benchmarks and Risk Adjustment SC

Benchmark Relevant performance comparator
PRI Tracks price changes only
TRI Includes reinvested distributions
Sharpe ratio Excess return per volatility
Treynor ratio Excess return per beta
Alpha Risk-adjusted excess return
Tracking difference Fund minus index return
Tracking error Tracking-difference variability
Category peer Same-category comparison
Factsheet Performance disclosure source
AMC website Official scheme disclosure source
AMFI website Industry disclosure source

Selection Order SC

Goal → Horizon → Risk → Scheme
Goal first Scheme last

Choose a Suitable Scheme SC

Goal undefined → Define amount and date ( Do this first )
Horizon short → Prioritize stability and liquidity
Horizon long → Assess growth allocation
Risk capacity low → Limit volatile exposure
Income needed → Assess cash-flow options
Category chosen → Compare category peers
Scheme shortlisted → Check SID and riskometer

Scheme Selection Framework SC

Investor need Start with financial goal
Risk capacity Ability to bear losses
Risk appetite Willingness to accept volatility
Horizon fit Match goal timing
Liquidity fit Match cash-access needs
Strategy fit Understand portfolio approach
Category comparison Compare like with like
Consistency Review multiple periods
Cost check Compare relevant expenses
Riskometer Scheme risk-level indicator
Option choice Match cash-flow preference
Suitability Product fits investor profile

Common Traps

NFO price means cheap

Offer price is arbitrary ≠ Portfolio value drives returns

Lower NAV means better

NAV reflects unit value ≠ Compare returns and suitability

IDCW is extra return

Distribution reduces scheme assets ≠ NAV adjusts after distribution

Direct and regular portfolios differ

Portfolio remains common ≠ Expenses and NAV differ

TDS settles final tax

TDS is withholding ≠ Final liability may differ

Riskometer guarantees outcomes

It indicates risk level ≠ Returns remain uncertain

Any benchmark works

Benchmark must match strategy ≠ Use relevant return basis

Credit rating guarantees repayment

Rating is an opinion ≠ Credit quality can change

SIP eliminates market risk

SIP spreads purchase timing ≠ Losses remain possible

Skip uncertain exam answers

No negative marking ≠ Attempt every question

Last Minute

1. Memorize 12 unit weights
2. Prioritize both 15% units
3. Know sponsor trustee AMC roles
4. Separate SID SAI KIM
5. Practice NAV calculations
6. Separate direct and regular
7. Distinguish SIP SWP STP
8. Review KYC investor categories
9. Match risks to metrics
10. Compare PRI and TRI
11. Know Sharpe Treynor alpha
12. Select by goal and risk
13. Avoid stale tax rates
14. Read every qualifier
15. Attempt all 100 questions
16. Budget 72 seconds each

NISM-Series-V-A: Mutual Fund Distributors Certification Examination

Practice Questions 140 questions Study Guide 75 topics Cheat Sheet 154 facts Flashcards 50 cards Podcast