MF Foundation
Entry-level mutual fund foundation exam — 50-question test for new cadre distributors with no negative marking.
Exam Pattern & Marking
Detailed Syllabus
10 chapters · 100 total marks
| # | Chapter | Marks | Practice Qs |
|---|---|---|---|
| 1 | Investor Services | 20 | 50 |
| 2 | Concept and Role of Mutual Fund | 12 | 32 |
| 3 | Performance of Mutual Funds | 12 | 40 |
| 4 | Scheme Related Information | 12 | 30 |
| 5 | Fund Distribution and Channel Management | 10 | 31 |
| 6 | Legal Structure of Mutual Funds | 8 | 22 |
| 7 | Legal and Regulatory Environment | 8 | 20 |
| 8 | MF Products for New Cadre | 6 | 15 |
| 9 | Investment Landscape | 6 | 15 |
| 10 | Taxation | 6 | 15 |
| Total | 100 | 270 |
Marks per chapter reflect the official NISM syllabus weightage. Practice question counts show the bank size in our app — use them to gauge depth of preparation needed per chapter.
Key Knowledge Areas
Overview
Series V-B is the entry-level mutual fund certification, designed for “new cadre” distributors restricted to selling specific simple products. It’s easier than V-A — only 50 questions, no negative marking, 50% pass mark, and ₹1,200 fee.
At a glance: 50 questions · 1 hour · 50% pass mark · No negative marking · ₹1,200 + GST.
Who should take V-B
- Postal department employees, business correspondents, retired bank/government employees
- New entrants who want a simpler MF certification
- Career switchers exploring distribution
- Anyone wanting a low-cost gateway to AMFI ARN (with restrictions)
Important: V-B holders can only sell specific simple products approved for new cadre. To sell the full MF universe, take V-A.
Key Knowledge Areas
MF concept & legal structure
The same trust-AMC-trustees-custodian structure as V-A, but covered at a more conceptual level. Less depth on regulatory minutiae, more on the basic mechanics of how a mutual fund pools and deploys money.
Approved products for new cadre
The “MF Products for New Cadre” chapter is unique to V-B. Approved products typically include:
- Liquid funds
- Overnight funds
- Specific equity index funds
- Hybrid balanced products
Key Fact: New-cadre distributors cannot sell ELSS, sectoral / thematic funds, mid/small-cap funds, or complex hybrid products. The approved list is published by AMFI periodically.
Investor services
Heavy weight (~20 marks). Topics: PAN/KYC, mode of holding, nomination, transmission, redemption modes, switch, SIP/STP/SWP. Same content as V-A but tested at simpler depth.
Performance & returns
Basic concepts: NAV, total return, point-to-point vs CAGR, riskometer, expense ratio impact. No deep risk-adjusted metrics (Sharpe, Sortino) — those come in V-A.
Exam Tips
Tip 1: No negative marking — attempt every question. Even random guesses have positive expected value (1/4 × 1 − 0 × 3/4 = 0.25 marks per random guess).
Tip 2: “MF Products for New Cadre” chapter is unique to V-B and worth ~6 marks. Don’t skip it.
Tip 3: Investor Services chapter has highest weight (~20 marks). Master KYC, nomination, transmission, switch, SIP/STP/SWP cold.
Tip 4: V-B uses simpler language than V-A. Read questions carefully — sometimes the simpler phrasing hides a single specific keyword that determines the answer.
Try the Free Quiz
Test your knowledge with our free Series V-B practice quiz — or get the full bank of 270+ V-B questions plus mock tests in the NISM Exam Prep app.
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