The AMFI Test Programme:
Objective
Mutual funds are emerging as an important financial intermediary
for the investing public in India. Conceptually and
operationally they are different. The investors need to
understand the working of a mutual fund and the increasingly
diverse and complex investment options brought to them by a
large number of mutual funds. AMFI believes that the key channel
in bringing the mutual funds to a large number of investors all
over the country is the network of INTERMEDIARIES/DISTRIBUTORS.
The intermediaries/distributors have to take on the role of
financial advisors to investors, a role for which they need
preparation. AMFI Mutual Fund Certification and Registration
Programme has been put together to give the fund distributors
the knowledge and insights required for them to become both
better intermediaries and more informed mutual fund advisors.
Even mutual fund employees need to understand the complexities
of how the funds function internally and externally.
AMFI Mutual Fund
Certification
AMFI Mutual Fund Certification is based on a testing
programme. There are two Modules of the test. The first is the
AMFI Mutual Fund (Basic) Module. This is a general test covering
the concept, structure and other essential general topics. This
is meant for all employees of Mutual Funds (other than those who
are engaged in selling and marketing activities), general public
and for those who would like to have a basic knowledge of
concept and working of Mutual Funds. Any one who desires to
acquire knowledge of the functioning of the mutual fund without
seeking to become a fund distributor can take part one test
independently.A certificate will be issued separately for Basic
Module test to the successful candidates.There is no validity
period for the AMFI-Mutual Fund (Basic) Module certification.
The second is the AMFI Mutual Fund (Advisors) Module and it
covers subjects such as financial planning, risks in fund
investing, model portfolio selection in addition to the subjects
covered under the Basic Module and constitute a single
certification programme which is designed for certification of
fund distributors or intermediaries engaged in selling mutual
fund schemes, employees of corporate intermediaries and
employees of mutual funds who are engaged in selling and
marketing activities.The validity period for the AMFI-Mutual
Fund (Advisors) module certification is for five years.
Certification is Mandatory
The Securities and Exchange Board of India (SEBI) has made
mandatory for any entity / person engaged in marketing and
selling of mutual fund products to pass AMFI certification test
(Advisors Module) and obtain registration number from AMFI.
Firms and corporates will have to obtain certification of
registration from AMFI and all employees of corporate
distributors engaged in selling and marketing of mutual fund
products have to pass the AMFI certification test (Advisors
Module) and obtain registration with AMFI before canvassing
business of mutual funds.
A Self-Study Workbook for the
Test Preparation
AMFI has prepared a special comprehensive study material to
help you prepare for the Mutual Fund Test. The Testing Programme
Workbook gives a detailed presentation of all relevant topics in
a textbook manner with adequate references and suggested
additional reading for each chapter. Also, questions are
indicated for different subjects as illustrative examples. The
book is structured and meant for self-study. The same can be
obtained from the AMFI office.
The second edition of the workbook was released in 2001 and
the same has now been thoroughly revised to include updated SEBI
Regulations and a separate section on "Business Ethics in Mutual
Funds". The third edition has been released in May 2006 by AMFI.
The following are the
subjects covered by the Test and the workbook contains all the
relevant details. The curriculum and list of topics for the test
are as under:
Part One
The Concept and Role of Mutual Funds
Fund Structures and Constituents
Legal and Regulatory Environment
The Prospectus/Offer Document
Fund Distribution and Sales Practices
Accounting, Taxation &Valuation Norms
Investor Services
Investment Management
Measuring and Evaluating Mutual Fund Performance
Part Two
Helping Investors with Finanacial Planning
Recommending the Financial Planning Strategies for Investors
Selecting the Right Investment Products for Investors
Helping Investors Understand Risks in Fund Investing
Recommending the Model Portfolios and Selecting the Right Funds
Business Ethics in Mutual Funds
What is the nature of the
test?
AMFI Test is a multiple option-testing programme with each
question having four different options and the candidate has to
choose the right answer. The marks for each question are
different and a wrong answer would result in negative marking to
the extent of 25 percent of the marks assigned to that question.
The passing mark is 50 out of a total of 100 marks.
Where to get the Workbook?
The workbook can be obtained from the office of AMFI at 709,
Raheja Centre, Free Press Journal Marg, Nariman Point, Mumbai
400 021, India. E-mail-amfi@bom5.vsnl.net.in. The price of the
workbook is Rs.300/-. The same can also be ordered by post by
sending a DD for Rs.400/- (inclusive of Rs.100/- as postage /
courier charge) favouring 'Association of Mutual Funds in India'
payable at Mumbai.
Postage Charges of Rs. 50/- payable for deliveries by courier in
Mumbai Upto Virar (on Western Line), upto Kalyan (on Central
Line) and upto Panvel (on Harbour Line) and Rs. 100/- for
delivery at all other destinations.
For further Clarifications please send mail to
sanjay@amfiindia.com
or amfi@bom5.vsnl.net.in
Who Can Take
the Test?
AMFI Mutual Fund Test is open to all persons
who wish to test their own knowledge of mutual funds. There are
no restrictions of age or qualifications for anyone to take the
Test. However all existing mutual fund agents, employees of
distribution companies and banks engaged in distribution of
mutual funds and employees of funds themselves must take the
Test. You do not have to be a fund distributor or employee to be
able to take the Test.
Where Will
the Test Be Conducted?
- AMFI CERTIFICATION (BASIC /ADVISORS MODULE) ONLINE TEST
(Computerized) IS CONDUCTED BY NATIONAL STOCK EXCHANGE OF
INDIA (NSE).
AMFI Mutual Fund Test is a separate Module of the National
Stock Exchange's(NSE)'s Certification in Financial Markets (NCFM)
which also offers other subjects such as for Derivative Trading,
Capital Markets etc.
AMFI Test is an automated online examination conducted on
computer. You do not need any prior knowledge of computers to be
able to take the test.
The
following are the Test Centres of NSE: |
