📊 NISM Series V-D Chapter 6 of 22 ⚖ 4 of 150 marks weightage

Ch.6: Fund Distribution and Channel Management Practices

Practice questions for NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination, Chapter 6: Fund Distribution and Channel Management Practices — covering types of distributors, ARN and EUIN, Direct vs. Regular plans, commission structures and disclosure, KYD and AMC due diligence, digital distribution (MFU, robo-advisors), and the AMFI Code of Conduct including mis-selling and churning safeguards. Carries 4 out of 150 marks. The exam has 150 MCQs, 60% passing score, and −10% negative marking per wrong answer.

What You Will Learn in This Chapter

Types of mutual fund distributors, AMFI Registration Number (ARN) validity/renewal, and the Employee Unique Identification Number (EUIN)
Direct Plans vs. Regular Plans, and how distributor commissions are reflected in the Total Expense Ratio (TER)
Commission structures, transaction charges, disclosure requirements, and the evolution of commission norms (e.g., ban on upfront commissions)
Distributor responsibilities, KYD (Know Your Distributor) and AMC due diligence, and ethical conduct (mis-selling, churning, suitability)
Digital distribution channels — Mutual Fund Utility (MFU) and online platforms — and the rise of robo-advisors

Key Terms:AMFI Registration Number (ARN)EUINDirect PlanRegular PlanTotal Expense Ratio (TER)KYDAMFI Code of ConductMutual Fund Utility (MFU)Robo-advisorCommission Clawback

Free Sample Question

Q1MCQEasyAMFI Registration Number (ARN)

What is the primary purpose of the AMFI Registration Number (ARN) for a mutual fund distributor?

ATo track the distributor's annual sales targets.

✓To enable the distributor to receive commissions for sales.

CTo certify the distributor as a registered investment advisor.

DTo identify distributors for tax compliance purposes only.

💡 The ARN is a unique number issued by AMFI that is mandatory for any individual or entity to distribute mutual funds and receive commissions for their sales. It ensures proper tracking and regulatory oversight.

48 more questions in this chapter

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About this content: These practice questions are based on the NISM-Series-VD: Mutual Fund - Specialised Investment Fund Distributors Certification Examination Workbook published by the National Institute of Securities Markets (NISM), Mumbai (March 2026 edition). NISM is a SEBI-established institution. Questions cover Chapter 6: Fund Distribution and Channel Management Practices with verified answers and explanations. BullWiser is an independent exam preparation platform — not affiliated with NISM, SEBI or AMFI. Last updated: July 24, 2026.

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