NISM Chapter 6 6%

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

• True
• False

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

• Securities and Exchange Board of India
• National Institute of Securities Markets
• Association of Mutual Funds in India
• National Skills Development Corporation

In what form do mutual fund distributors earn revenue?

• Fees collected from the investors
• Commission from mutual funds for distribution of schemes
• Commission received from AMFI
• Investment advisory fee from mutual funds

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

• True
• False

Transaction charge allowed by SEBI per subscription of Rs. 10,000/- and above to be paid to distributors of the mutual fund products is ?

• Rs. 100
• Rs. 150
• Rs. 200
• Rs. 250

Which among the following is not a mode of mutual fund distribution?

• National Institute of Securities Market
• Online Channel Partners
• Stock Brokers
• Mutual Fund Utilities

Mutual Fund distributors earn no commission when the investor choose to invest in "direct" plans. State whether True or False.

• True
• False

A Mutual Fund distributor is paid trail commission for -

• First 5 years of investment done by investor
• First 15 years of investment done by investor
• As long as investor holds the investment
• First 10 year of investment done by investor

ARN refers to

• Agent Registration Number
• Application Registration Number
• AMFI Registration Number
• Account Registration Number

Commission paid at the time of investment is called

• Upfront Commission
• Rebate
• Trail
• AUM retention fee