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.
- 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.
- 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.
