CHAPTER NISM VA 6

—– Analyses the situation of the investor; whereas the —- analyses the market factors

Which of the following can be a mutual fund distributor?

Which of the following are institutional distributor?

Sub-agents are not employees of the firm, but purely work as an extended distribution arm.

Which of the following are advantage of online mode of distribution?

SEBI has facilitated buying and selling of the units of open-ended mutual funds through the stock exchanges.

Mutual fund trading platform on NSE

Mutual fund trading platform on BSE

The stock exchanges only offer a transaction platform, but they do not replace the RTAs.

— Is a transaction aggregating platform that connects investors, RTAs, distributors, banks, AMCs and others.

Investors who register on the MFU are allotted a —— under which all their mutual fund holdings are consolidated

MFU allows a single payment for multiple subscriptions made under a single form.

Pre-requisites to become Distributor of a Mutual Fund

KYD process include:

ARN means

Armed with the ARN No., the distributor/stock exchange broker can get empanelled with — number of AMCs.

Institutions that are into distribution of mutual funds need to register with AMFI. The employees of these institutions need to clear the ——- Certification Examination and obtain an —-

Separate ARN required for employees, even if they operate under the ARN of the institution that they are working for.

—–In one shot, ——-would be payable over a period, and hence the commission would be payable periodically.

—- Is calculated as a percentage of the net assets attributable to the Units sold by the distributor

Trail commission depends on the—-

A mutual fund distributor is paid trail commission for as long as the investor’s money is held in the fund

Which of the following represent unique benefit of trail commission?

Commission is payable to the distributor for their own investments.

There shall be no transaction charges on direct investments.

Transaction charge for :First time mutual fund investor —-,Investor other than first time mutual fund investor Rs.—-

The —shows the net investment made as the gross subscription less transaction charge and provides the number of units allotted against the net subscription

In case of investments through SIP, transaction charges are deducted only if the total commitment (i.e. amount per SIP instalment x number of instalments) amounts to Rs. —-or more.

Transaction Charges will not be deducted for which of the following

SEBI has mandated Mutual Funds/AMCs to disclose on their respective websites the total commission and expenses paid to distributors who satisfy:

SEBI has mandated AMCs to put in place a due diligence process to regulate distributors who qualify which of the following condition:

AMFI has advised its members (AMCs) to offer nomination facility to the AMFI registered mutual fund distributor

A nominee/legal heir need to be an ARN holder to claim and receive the commission.

Nominee shall receive the commissions only as trustee for the legal heirs of the deceased MFD.

Only individuals are allowed to distribute mutual funds in India. State whether True or False.

Mutual Fund Distributors Certification Examination offered by __________ is required for becoming a mutual fund distributor.

In what form do mutual fund distributors earn revenue?

Mutual fund distributors can only earn upfront commission from the mutual funds. State whether True or False.

Mutual fund distributors earn no commission when the investor chooses to invest in “direct” plans. State whether True or False.