Skip to main content

AMFI - Certification

This post will help you in understanding what AMFI is about, who should go for this certification, training material and preparation guidelines.

AMFI is an apex body of all Asset Management Companies (AMC), which has been registered with SEBI. Till date all the AMCs are that have launched mutual fund schemes are its members. It functions under the supervision and guidelines of its Board of Directors.

Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a professional and healthy market with ethical lines enhancing and maintaining standards. It follows the principle of both protecting and promoting the interests of mutual funds as well as their unit holders.

About Certification

  • THE Securities and Exchange Board of India (SEBI) has made AMFI certification mandatory for all mutual fund agents.
  • The Association of Mutual Funds in India (AMFI) runs a certification programme for agents and distributors of mutual funds.
  • Following the SEBI notification, agents and distributors appointed by all mutual funds including Unit Trust of India should have AMFI certification.
  • The market regulator has also made mandatory for the existing agents and distributors, this certification programme by March 31, 2003.
  • SEBI has also said that the employees of mutual funds, particularly those involved in sales and marketing should be encouraged to pass the certification process by December 2002.

Types of Certification

AMFI Mutual Fund Certification is based on a testing programme. There are two Modules of the test.

  1. AMFI Certification (Basic) - This is a general test covering the concept, structure and other essential general topics. This is meant for all employees of Mutual Funds (other than those who are engaged in selling and marketing activities), general public and for those who would like to have a basic knowledge of concept and working of Mutual Funds. Any one who desires to acquire knowledge of the functioning of the mutual fund without seeking to become a fund distributor can take part one test independently. A certificate will be issued separately for Basic Module test to the successful candidates. There is no validity period for the AMFI-Mutual Fund (Basic) Module certification.
  2. AMFI Certification (Advisory) - The second is the AMFI Mutual Fund (Advisors) Module and it covers subjects such as financial planning, risks in fund investing, model portfolio selection in addition to the subjects covered under the Basic Module and constitute a single certification programme which is designed for certification of fund distributors or intermediaries engaged in selling mutual fund schemes, employees of corporate intermediaries and employees of mutual funds who are engaged in selling and marketing activities. The validity period for the AMFI-Mutual Fund (Advisors) module certification is for five years.

This certification is also ideally suited for IT professionals & IT Business Analysts who are engaged in Projects of Asset Management Co’s worldwide, which walks you through the regulatory body, types of mutual Funds and helps you gain domain expertise.

Examination & Course Material

1. Course Material -The workbook/course material can be obtained from the office of AMFI at:

709, Raheja Centre,
Free Press Journal Marg,
Nariman Point, Mumbai 400 021, India.
E-mail-amfi@bom5.vsnl.net.in.

The price of the workbook is Rs.300/-. The same can also be ordered by post by sending a DD for Rs.400/- (inclusive of Rs.100/- as postage / courier charge) favouring 'Association of Mutual Funds in India' payable at Mumbai.

Postage Charges of Rs. 50/- payable for deliveries by courier in Mumbai Upto Virar (on Western Line), upto Kalyan (on Central Line) and upto Panvel (on Harbour Line) and Rs. 100/- for delivery at all other destinations.

For further Clarifications please send mail to sanjay@amfiindia.com

2. Examination which is offline as well as online is conducted in collaboration with NSE. AMFI Mutual Fund Test is a separate Module of the National Stock Exchange's(NSE)'s Certification in Financial Markets (NCFM) which also offers other subjects such as for Derivative Trading, Capital Markets etc.

Further the Cost to go for online examination is 1000 Rs which can be done by registering to NCFM Website. i.e. www.ncfm-india.com

Preparation guidelines

1. Preparing for AMFI is not like studying rocket science, by dedicating an hour or more... you can complete all the chapters in 2 weeks.

2. You can jot down some important dates mentioned in the workbook, and note down all formulas and practice them well (as most of the questions are up on calculating NAV ,etc)

3. Workbook is your bible, read thoroughly and use this test paper/question set mentioned above in link to answer them and go through the chapters again from work book if you fail to understand.

4. So ideally it should not take more then a month to prepare.

5. However it would be wise to keep yourself updated about Mutual Funds, practices, through all possible means like websites, blogs, Economic times, Business Standard etc to make your preparation for AMFI test easy.

Hope my this effort to add my experience about this certification will benefit my readers.

I encourage my readers to raise comments with respect to your understanding and clarifications.

Apart from this blog also refer AMFI SITE i.e. http://www.amfiindia.com/showhtml.asp?page=certification for more clarification.

For any questions or clarifications please leave your comment on the site.

Popular posts from this blog

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

How you can beat Inflation

You can do precious little to stop prices of products and services from rising. But you can insulate yourself against this rise by either cutting down on your consumption or saving enough to be able to afford these products and services in future. Investors saving for long-term goals such as their children's education and marriage and their own retirement should remember that a 100% debt based portfolio will never be able to beat inflation. In the past 10 years, the CPI for urban consumers has risen by an average 8.07%.This means investments that offer less than 8% returns have not been very lucrative. Eroded by inflation , the purchasing power of the maturity corpus is less than that of the principal at the time of investment (see graphic).   The only way to beat the incessant march of inflation is to invest in instruments that offer higher returns. Stocks and equity-oriented funds have a good long-term record of beating inflation. In the past 10 years, equity funds have delive...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now