NISM X Taxmann's Mutual Fund Foundation – Exhaustive guide on sales, distribution, and support services for financial advisors focusing on scheme evaluation and product recommendation
About this ebook
It covers mutual funds' basics, roles, structures, types, accounting, valuation, taxation, and distribution
Designed specifically to aid financial advisors, the book emphasizes understanding mutual funds and using this knowledge to develop and maintain client relationships. It will also benefit all those who want to understand the Indian mutual fund industry better. This book also advocates for financial planning as a key investment approach in mutual funds. It discusses the concept of:
• Scheme Evaluation – It discusses how to evaluate various mutual fund schemes.
• Recommendation of Products and Services – Guidance is provided on recommending suitable products and services to investors and prospective investors.
The Present Publication is the October 2023 workbook version, published exclusively by Taxmann for NISM Certification Examination V-B [Mutual Fund Foundation], with the following noteworthy features:
• [Know the Basics] A section that provides an in-depth understanding of mutual funds, including their roles, structures, and different types of schemes.
• [Know How Mutual Funds are Distributed] This part discusses the distribution of mutual funds in the market, including evaluating schemes and recommending suitable schemes to prospective investors.
• [Know the Rules and Regulations] It covers the regulatory framework related to distributing mutual fund products, an important aspect for professionals in the industry.
The structure of this book is as follows:
• Introduction to Mutual Funds
o Investment Landscape – Insights on investment basics, different asset classes, financial needs, financial goals, and the role of mutual funds in achieving these goals
o Concept and Role of a Mutual Fund – Discusses the concept, classification, and growth of mutual funds, particularly in India
• Structural Insights
o Legal Structure of Mutual Funds in India – Discusses the structure, key constituents, organization of asset management companies, and the roles of various service providers and AMFI
• Products and Distribution
o Mutual Fund Products for New Distributors – Covers mutual fund products specific to new distributors, including various schemes like liquid, index funds, diversified equity schemes, retirement benefits, and fixed maturity plans
o Scheme-Related Information – Details mandatory and non-mandatory disclosures in mutual funds
o Fund Distribution and Channel Management Practices – Focuses on the role of mutual fund distributors, types, modes of distribution, prerequisites, revenue models, and regulatory aspects
• Performance and Taxation
o Performance of Mutual Funds – Discusses the calculation of returns, concept of loads, risk in mutual fund investments, and risk-adjusted returns.
o Taxation – Covers taxation aspects, including capital gains, dividend income, stamp duty, securities transaction tax, and tax benefits related to mutual funds
• Investor Services
o Investor Services – Provides information on the NFO process, investment plans and services, allotment of units, account statements, KYC requirements, and operational aspects of mutual fund transactions
• Legal and Regulatory Framework
o Legal and Regulatory Environment – Explores the role of SEBI, investor grievance redressal, and codes of conduct and ethics in mutual funds
• Appendices
o Includes formats for scheme information documents, statement of additional information, key information memorandum, and AMFI's code of ethics and conduct
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About the author
NISM is a leading provider of high-end professional education, certifications, training and research in financial markets. NISM Certification programs aim to enhance the quality and standards of professionals employees in various segments of the financial services sector. NISM's School of Certification of Intermediaries (SCI) develops and conducts certification examinations and Continuous Professional Education (CPE) programs that aim to ensure that professionals meet the defined minimum common knowledge benchmark for various critical market functions like:
• Mutual Funds
• Equities
• Derivatives
• Securities Operations
• Compliance
• Research Analysis
• Investment Advice
These Certifications and CPE Programs are being developed and administered by NISM as mandated under 'Securities and Exchange Board of India (Certification of Associated Persons in the Securities Market) Regulations, 2007'. The Certifications create quality market professionals and catalyse greater investor participation in the markets. Certifications also provide structured career paths to students and job aspirants in the securities market.
