Curriculum – NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors Certification Examination
Investment Landscape
- Define Investment
- Investment versus Speculation
- Know the objectives of Investments
- Estimating the required rate of return
- Types of Investments
- Channels for making investments
Introduction to Securities Markets
- Define Securities Markets
- Primary and secondary securities markets
- Market participants and their activities
Investing in Stocks
- Equity as an investment
- Diversification of risk through equity instruments
- Risks of equity investments
- Overview of Equity Market
- Equity research and stock selection
- Technical Analysis
- Understanding corporate governance
Investing in Fixed Income Securities
- Overview of Fixed Income Securities
- Bond Characteristics
- Determinants of bond safety
- Analysis and Valuation of Bonds
- Measuring price volatility for bonds
- Determining Duration
Derivatives
- Definition of Derivatives
- Types of derivative products
- Structure of derivative markets
- Purpose of Derivatives
- Introduction to Commodity and Currency Futures and Options
- Underlying concepts in derivatives
Mutual Fund
- Concept and Role of Mutual Fund
- Benefits of investing through mutual funds
- Legal Structure of Mutual Fund in India
- Working of mutual funds
- Types of Mutual fund products
- Processes of investing in mutual funds
- Legal and Regulatory Framework – Key SEBI Regulation
- Fact Sheet – Scheme Related Information
- Net Asset Value, Total Expense Ratio, Pricing of Units
- Mutual Fund Scheme Performance
- Key performance measures
Role of Portfolio Managers
- Overview of portfolio managers in India
- Types of portfolio management services
- Organizational Structure of PMS in India
- Registration requirements of a Portfolio Manager
- General Responsibilities of a Portfolio Manager
- Administration of investor’s portfolio
Operational Aspects of Portfolio Managers
- Entities which can invest in PMS
- Disclosures to the prospective clients
- Process of on boarding of clients
- Direct On-boarding in PMS
- Liability in case of Default
- Redressal of Investors grievances
- Disclosures to the regulator
- Costs, expenses and fees of investing in PMS
Portfolio Management Process
- Importance of Asset allocation decision
- Understanding correlation across asset classes and securities
- Process of on boarding of clients
- Steps in Portfolio Management Process
- Asset allocation decision
- Strategic versus Tactical Asset Allocation
- Re-balancing of Portfolio
Performance measurement and evaluation of Portfolio Managers
- Parameters to define performance – risk and return
- Understanding correlation across asset classes and securities
- Rate of return measures
- Risk measures
- Risk adjusted return
- Performance Evaluation: Benchmarking and peer group analysis
- Performance attribution analysis
- Performance reporting to the Investor
- Due Diligence and Portfolio Manager selection
- Global Investment Performance Standard (GIPS)
- GIPS Advertisement Guidelines
Taxation
- Taxation of investors
- Taxation of various streams of income
- Section 9A of Income Tax
Regulatory, Governance and Ethical Aspects of Portfolio Managers
- Prevention of Money Laundering Act, 2002
- SEBI (Prohibition of Insider Trading) Regulation 2015
- SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003
- Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020
E. Best practices for portfolio Managers
