NISM Series V-A Cheat Sheet

Use the tables for a quick pre-exam check. Expand a topic’s notes for explanations, examples, and additional distinctions.

Mutual-fund participant map

Document map

Plan and option distinctions

NAV and return formulas

NAV per unit

\[ \text{NAV per unit} = \frac{\text{Market value of investments} + \text{current assets} - \text{current liabilities and provisions}}{\text{units outstanding}} \]

Holding-period return

\[ R = \frac{V_1 + D - V_0}{V_0} \times 100 \]

where \(V_0\) is the beginning value, \(V_1\) is the ending value, and \(D\) is the cash distribution during the period.

CAGR

\[ \text{CAGR} = \left(\frac{V_1}{V_0}\right)^{1/n} - 1 \]

Use CAGR only when the assumptions fit the supplied cash-flow pattern and period.

Risk-adjusted measures

\[ \text{Sharpe ratio} = \frac{R_p - R_f}{\sigma_p} \]\[ \text{Treynor ratio} = \frac{R_p - R_f}{\beta_p} \]\[ \alpha = R_p - \left[R_f + \beta_p(R_m - R_f)\right] \]\[ \text{Tracking error} = \operatorname{SD}(R_p - R_b) \]

Investor-service distinctions

Current terminology anchors

• IDCW: Income Distribution cum Capital Withdrawal.
• IDCW Transfer Plan: transfer of an eligible IDCW amount from a source scheme to a target scheme.
• ARN: distributor registration identifier.
• EUIN: employee or salesperson identifier associated with the interaction.
• BER / TER: base expense ratio and total expense ratio are related but distinct current measures.
• Entry load: zero for current mutual-fund schemes; apply exit load only from the stated scheme terms and holding-period facts.

Exact tax rates, thresholds, timelines, cut-off rules, settlement practices, and scheme categories can change. Use the effective date and controlling facts supplied in a question, then verify current operational rules with official sources.

Notes and examples

Current terminology check

• Use Income Distribution cum Capital Withdrawal (IDCW) for the current option terminology.
• Use IDCW Transfer Plan for the current transfer facility terminology.
• Distributor transaction charges were discontinued effective August 8, 2025.
• The current distributor code is the AMFI Code of Conduct for Mutual Fund Distributors.
• Current regulatory questions may depend on an effective date. Use the date stated in the item rather than assuming every rule applied historically.

Read the paper as four connected blocks

Units 1-3: foundations and structure

• Separate saving from investing and return preference from risk capacity.
• Link asset allocation to goal, time horizon, liquidity, inflation, and capacity for loss.
• Distinguish open-ended and close-ended schemes, active and passive management, and growth and IDCW options.
• Keep sponsor, trustees, AMC, custodian, RTA, fund accountant, depository, and KRA responsibilities distinct.
• Recognise that the mutual fund is constituted as a trust; the AMC manages investments, while trustees provide oversight.

Common trap: selecting a product from age or desired return alone without enough investor facts.

Units 4-6: regulation, documents, and distribution

• Use SEBI for regulatory authority and AMFI for distributor standards and industry processes.
• Use the SID for scheme-specific details, the SAI for statutory information common to the mutual fund, and the KIM for the concise offer summary.
• Distinguish an ARN from an EUIN: the ARN identifies the distributor registration; the EUIN identifies the employee or salesperson involved.
• Keep direct and regular plans separate. A regular plan includes distributor involvement and may have a different expense structure.
• Keep a mutual fund distributor’s non-discretionary product-distribution role separate from investment-adviser and portfolio-management services.
• Current schemes have no entry load. Apply exit load only when the stated scheme and holding-period facts require it.

Common trap: treating a distributor as though the distributor has discretionary authority over the investor’s portfolio.

Units 7-9: pricing, taxation, and investor services

• NAV reflects scheme assets and liabilities per outstanding unit; it is not the same as market price, return, or intrinsic value.
• Keep base expense ratio and total expense ratio conceptually distinct when the question supplies current framework facts.
• Follow the transaction sequence: request, time stamp, applicable NAV, unit allotment or redemption, settlement, and account update.
• Read investor-service questions for account mode, holder status, instruction, documentation, transaction date, and authority.
• Keep nomination, pledge, lien, debit freeze, transmission, and account closure distinct.
• Treat tax rules, thresholds, rates, and holding periods as date-sensitive. Use the facts supplied in the question.

Common trap: applying a familiar tax or transaction rule without checking the date and investor status.

Units 10-12: risk, performance, and selection

• Match risk measures to the problem: standard deviation for variability, beta for market sensitivity, modified duration for interest-rate sensitivity, and tracking error for index-tracking consistency.
• Use Sharpe for excess return per unit of total risk and Treynor for excess return per unit of systematic risk.
• Distinguish absolute, annualised, compounded, and investor-specific returns.
• Compare a scheme with an appropriate benchmark and peer context; do not use return alone as proof of suitability.
• Select a scheme only after connecting goal, horizon, risk profile, liquidity, tax facts, portfolio context, and product characteristics.

Common trap: choosing the highest historical return when the investor facts point to a different risk, horizon, or liquidity need.

Final review sequence

1. Complete one unseen mixed set under time.
2. Classify each miss by unit and decision error.
3. Review the controlling distinction, not just the correct letter.
4. Drill the two weakest units with new questions.
5. Recheck calculations and current-rule notes.
6. Return to a mixed set and verify that the weakness no longer repeats.

A stable score above the 50% pass mark on unseen questions is more useful than a perfect score obtained by repeatedly memorising the same set.

Put the review into practice