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NISM Series V-D: Mutual Fund: Specialized Investment Fund Distributors exam preparation
The common certification for mutual fund and SIF distributors: fund basics, the SIF framework, plus equity and interest rate derivatives.
NISM Series V-D exam pattern
NISM Series V-D syllabus, unit by unit
The exam covers 12 units. The percentage is the share of questions each unit usually carries, so spend your time in that proportion.
Unit 1 Investment landscape, mutual fund concept and structure8%
Asset classes, risk and return, how a mutual fund pools money and the sponsor-trustee-AMC structure.
- Risk and return.
- Role of a mutual fund.
- Sponsor, trust, AMC, custodian.
Unit 2 Legal, regulatory framework and scheme information9%
SEBI regulation, the role of AMFI, scheme documents, offer rules and scheme categories.
- SEBI Mutual Fund Regulations.
- SID, SAI and KIM.
- Scheme categorisation.
Unit 3 Distribution, NAV, expenses and tax8%
How funds are sold, how NAV and TER work and how mutual fund income is taxed.
- Distribution channels.
- NAV and TER.
- Taxation of gains.
Unit 4 Investor services, risk, performance and scheme selection12%
Account services, KYC, risk profiling, performance measures and choosing a scheme.
- KYC and services.
- Risk measures.
- Return measures.
- Suitability.
Unit 5 Specialized Investment Funds: framework and rules8%
What a SIF is, how it sits between mutual funds and PMS, the strategies, the ₹10 lakh threshold, limits and distributor duties.
- Minimum investment.
- Strategy rules.
- Limits and redemption.
- Suitability for SIFs.
Unit 6 Basics of derivatives and understanding index10%
What derivatives are, who uses them, the types of contracts and how stock indices are built.
- Hedgers, speculators, arbitrageurs.
- Forwards, futures, options, swaps.
- Index construction.
Unit 7 Forwards and futures10%
Futures contracts, pricing, margins, mark-to-market and settlement.
- Forward vs future.
- Cost of carry.
- Margins and MTM.
- Settlement.
Unit 8 Options9%
Calls, puts, premium, moneyness, payoffs, pricing drivers and Greeks.
- Call and put.
- Intrinsic and time value.
- Moneyness.
- Greeks.
Unit 9 Strategies using equity futures and options6%
Hedging, spreads, straddles and how funds and SIFs use equity derivatives.
- Hedges.
- Covered call and protective put.
- Straddle and spreads.
Unit 10 Interest rates, fixed income markets and interest rate derivatives5%
Interest rate basics, bond price and yield, and why interest rate derivatives exist.
- Bond price and yield.
- Duration.
- Why IRDs.
Unit 11 Interest rate futures and options11%
How exchange-traded interest rate futures and options are built, priced and settled.
- Notional bond and T-bill futures.
- PV01 and hedge ratio.
- Interest rate options.
Unit 12 Strategies using interest rate derivatives and distributor conduct4%
Hedging and trading strategies with interest rate derivatives and the distributor's duties for complex products.
- Hedge a bond portfolio.
- Adjust duration.
- Ethics and disclosure.
Try 4 sample questions
These are from Mock 1. Open the free mock to see the correct answer and the reason behind each one.
Q1. Which term is described here? A SWP lets an investor take a fixed amount at regular intervals by redeeming units.
- Yield to maturity
- Cash settlement of index futures
- Systematic withdrawal plan
- Derivative risk
Q2. Which term is described here? Investors can complain to the AMC, then to SEBI's complaint system and use online dispute resolution if unresolved.
- Bond price and yield
- Role of trustees
- Grievance redressal
- Open-ended and closed-ended
Q3. Which statement best describes “Derivative risk”?
- Standard deviation measures how much returns vary around their average, so a higher value means a more volatile fund.
- A distributor needs an AMFI Registration Number to sell funds, and an EUIN identifies the employee or sales person who gave advice.
- A clearing corporation becomes the counterparty to both sides of every exchange-traded contract, reducing counterparty risk.
- Leverage in derivatives magnifies both gains and losses, so position limits and margins matter.
Q4. Which statement best describes “AMFI”?
- AMFI is the industry body of AMCs that promotes standards, sets code of conduct for distributors and registers them with an ARN.
- Put-call parity links call, put, spot and the present value of strike for European options with the same strike and expiry.
- If market movement reduces an investor's holding below ₹10 lakh, the investor can only redeem the entire remaining amount rather than part.
- Stamp duty is charged at 0.005% on purchase of units, including switches and SIP instalments.
How to prepare for NISM Series V-D
- Download the study guide and read the first three pages.
- Study the biggest units first. Their weight shows on this page.
- Take Mock 1 after one pass through the guide.
- Move to the next mock only when you clear the pass mark by 15 marks.
- Redo every wrong answer. Each one names its unit.
The app also lists your weak units after each mock and runs in English, Hindi or Gujarati. Mock tests and study material are in English.
Frequently asked questions
How many questions are there in NISM Series V-D?
The NISM Series V-D (Mutual Fund: Specialized Investment Fund Distributors) exam has 150 multiple-choice questions carrying 150 marks, to be answered in 180 minutes.
What is the passing score for NISM Series V-D?
The pass mark is 60%. Aim to clear 75% in practice mocks before you book the real exam.
Is there negative marking in NISM Series V-D?
Yes. The negative marking is 10% of marks. Practise leaving a question blank when you are unsure.
Is the NISM Series V-D study guide free?
Yes. UpperCrust Academy gives a free 39-page study guide PDF for NISM Series V-D, written unit by unit.
Are the NISM Series V-D mock tests free?
Yes. You get 5 full-length mock tests with the answer and the reason for every question. Sign in once with your mobile number or Google to start.
Is this affiliated with NISM?
No. UpperCrust Academy is independent preparation material from UpperCrust Wealth. Confirm the latest syllabus and exam rules on the official NISM website.
More NISM exams
UpperCrust Academy is independent study material from UpperCrust Wealth. It is not affiliated with NISM, SEBI or AMFI. For education only. Not investment advice. Always confirm the latest syllabus and rules on the official NISM website.