NCFM - Mutual Fund Beginners Module online Course

NCFM Mutual Fund Training

NCFM training offers a number of opportunities, practical knowledge as well as skills to the people that are required for operating in a financial sector. For dispensing quality intermediation, people who work in the industry should be following a certain code of conduct which is generally achieved by means of regulations and they need to possess the required knowledge as well as the skills which can be acquired via a testing and certification system. There is more requirement of human expertise in intermediation in comparison to technological support and thus it is essential for a person who provides intermediation in the industry to gain a good business understanding and the skills which will help in keeping it competitive. For ensuring thus, the accepted international practice is that the personnel who work for the market intermediaries need to be certified. This training helps the personnel in learning a few very significant mutual fund concepts like the investment process, role of the compliance officer, custodians, Registrar along with the rights and obligations of the investors.

Perception and Reality related to Mutual Funds

The industry of mutual funds has been evolving fast. Several bodies in the industry are also making investments for creating investor education. However, it is considered an option for investment by lesser than 10% households since it is thought by people as an investment that involved high risks. Actually, it is a form of investment that is most hassle free, comprehensive and also flexible which can help in the accommodation of various requirements of the investor. There are a number of categories of mutual funds that have been designed for allowing investors to select a scheme on the basis of the risks that they can take, the amount that they can invest the goals of their investment and also the term s of investment expected by them.

Kinds of Mutual Funds

On the basis of the maturity period of investments, the mutual funds can be of the following types –

1. Open Ended – under this scheme units can be bought or sold anytime and the maturity date is not fixed. These consist of –

• Debt / Income
• Money Market/ Liquid
• Equity / Growth – index scheme, sectoral scheme and tax saving
• Balanced

1. Close Ended – such a scheme has a maturity period that is stipulated and the investments can be made by the investors only at the time when they are launched initially. This initial period of launch is known as the New Fund Offer (NFO).

• Capital Protection
• Fixed Maturity Plans (FMPs)

1. Interval – This operates as a combination of the schemes that are open as well as close ended and the investors are allowed to do trading of the units at the intervals that are pre-defined.

Investments should be made in which schemes?

Customized advise is needed for the selection of a scheme in which investments can be made. The best option will be to select a scheme that provides the correct combination of the various factors like stability as well as income, growth and also the returns that you are expecting from the investments that you have made. The present training will help you in selecting the mutual fund that is best suited for you and you can also think in terms of making it your career by helping others select the best investment options.

Course Description

1. Introduction

In the introductory section, you get to understand the things that will be covered in the training and also the basics related to mutual funds.

1. Basic Concepts related to Mutual Funds

This section will be covering the various aspects such as –

• What are mutual funds?
• Reasons why one should select the option of mutual funds
• In what ways can a person distribute his or her investments?
• The structure of mutual funds that is present in case of India.
• Who has the responsibility of managing the money of the investors?

1. Roles of the Registrar, Compliance Officers and Custodians

This section will be covering the roles of the various personnel who are involved in the process.

• Functions of the Compliance Officer as well as the Custodian
• Functions of the Transfer Agent and the Registrar
• New Fund Officer
• Functions of AMC

1. The process of investment along with the rights of the investors and their obligations

This is the most detailed and comprehensive section of the entire module and consists of a number of aspects.

• Procedures related to investments in NFO.
• Rights as well as Obligations of their investors
• Index Funds
• Equity Funds
• Funds that are open ended
• Funds that are close ended
• Midcap as well as Sectoral Funds
• Large cap funds that have been diversified
• “Concept Clarifier – Tracking Error”
• Other schemes related to equity
• More of the schemes that are related to equity
• Concept Clarifier with respect to “Assets under Management” and “Growth and Value Investing”.
• Fund Fact Sheet
• The basics related to NAV
• Expense Ratio
• Questions on Expense Ratio as well as Portfolio Turnover
• How portfolio turnover is effected by AUM
• Levels of cash in case of “Portfolio and Exit loads”
• The “Exchange Traded Funds” will be introduced
• Features that are related to ETFs
• Buying and also selling of ETFs – Concept Clarifier
• An understanding related to gold ETFs
• The way in which the ETFs as well as mutual funds work
• A detailed study related to the working of Gold ETFs
• Making of the market by APs
• Portfolio Deposit, Creation Units and part 2 of the cash component
• Salient features of the debt funds
• Risks that are related to the interest rate
• Risks that are related to credit
• Pricing of the debt instrument
• Maturity yield
• Maturity plans that are fixed
• Balanced funds, Gilt funds and Capital Protection Funds
• Child benefits plans and MIP
• Introduction to the liquid funds
• Clarification of the concepts related to “Mark to Market” and method of “Cost plus interest” that has accrued
• Papers that have a period of maturity that is lesser than 182days
• The scheme of floating rate
• Taxes related to capital gains
• Indexation
• Why the popular options of dividends are the FMPs
• Options of growth
• Overview of the regulations
• AMFI objectives
• Benefits that are associated with mutual funds
• SWP and STP and SIP
• Payout of dividends and growth funds
• Options for the reinvestment of dividends
• Tips for the NCFM exams

What are the requirements/pre-requisites?

The learning curve of the NCFM Mutual Fund training is gradual as the learners have to possess knowledge of all the basis financial concepts and computers in order to gain an understanding of the module. The main requirements for the this Module consist of –

• NCFM Mutual Funds Beginners Module requires the learners to possess knowledge of the basic concepts of finance
• NCFM Mutual Funds Beginners Module also requires the beginners to posses the basic knowledge related to working on excel.
• The passion to learn should be present in the students if they are to gain a proper understanding of this module.

• Investors
• Financial Planning and Analysts
• Equity Researchers

Currently there are no Q&As for this course. Be the first to ask a question.

Certificate of completion

Digital certificate - Included