Curriculum (Mutual Fund Foundation)
Concept and Role of a Mutual Fund
- Know the concept of securities markets and its role in the Indian Economy
- Understand the concept of mutual fund and compare and contrast with conventional investment avenues such as Bank Deposits, Post Office Deposits, Public Provident Fund.
- Understand the mutual fund industry and related concepts
- List the advantages and limitations of a mutual fund
- Understand the two plans or routes for investors to invest in a mutual fund
- Know about the different kind of investment options available to the investors
- Explain the role of new cadre of mutual fund distributors
- Do-it-yourself versus Taking Professional Help
Fund Structure and Constituents
- Know the basic legal structure of mutual funds in India and understand their role
- Understand the role and support functions of service providers of mutual funds
- Understand the organisation structure of Asset Management Company
Mutual Fund Products
- Understand the classification of mutual fund schemes
- Explain the categorisation and definition of open-end mutual fund schemes
Performance of Mutual Funds
- Understand the classification of mutual fund schemes
- Understand the concepts of Entry Load and Exit Load and their application in calculating the Net Asset Value (NAV)
- Understand the calculation of returns for an investor investing in mutual fund schemes
- Understand the concept of risk in a mutual fund investment
- Understand the measures of risk adjusted return
- Understand the concept of benchmark for some of the mutual fund schemes
Mutual Funds Taxation
- Understand the different types of taxes associated with mutual fund schemes
- Select different schemes of mutual funds based on their tax implication
Offer Document
- Know the process of New Fund Offer (NFO)
- Understand the key components of an offer document
Fund Distribution and Sales Practices
- Know various distribution channels for mutual funds
- Know the pre-requisites to be fulfilled to become a distributor of a mutual fund
- Know the transaction charges and commission structure for mutual fund distributors
- Know the regulations, guidelines and code of conduct for selling mutual fund schemes
Investor Transactions
- Know the types of investors eligible to invest in mutual fund schemes
- Understand the compliance requirements for mutual fund investors
- Know the KYC process followed by distributors through KYC Registered Agency (KRA)
- List the types of investor transactions in mutual funds
- Understand the different transaction mediums for purchase and repurchase (sale) of mutual fund
- Know the cut-off timing for subscription and redemption of mutual fund schemes
- Understand the concept of dematerialisation and mutual fund transactions through stock exchanges
Investment Services
- Describe the mutual fund investment plans
- Understand the systematic transaction processes
- Describe the contents and periodicity of Statement of Account (SoA) and Consolidated Account Statement (CAS) to the investor
- Explain the process for nomination and pledge
- List investor services and facilities offered by AMCs
- Tax benefit under Section 80C of the Income Tax Act
Asset Classes
- Understand the objective behind investing in different asset classes through mutual funds
Financial Planning Concepts
- Understand the basics of Financial Planning
- Relate financial planning to financial goals and the time horizon for their achievement
- Relate Financial Goals with Investment Requirements
Helping Investors with Financial Planning
- Understand the steps of financial planning
- Know various stages of Life Cycle and investment needs
- Know various stages of Wealth Cycle and investment needs
- Understand the importance of risk profiling
- Understand financial planning with the help of model portfolios
- Understand the important parameters for selecting mutual fund schemes
- Understand taxation and liquidity aspects while selecting growth and dividend option within a mutual fund scheme
- Identify the sources of data to track mutual fund performance
Legal and Regulatory Environment
- Know the role of SEBI in regulating mutual funds
- List the functions of AMFI
- Understand Investors rights and obligations
