If you were planning to give the NISM Series XIII exam, or you already gave it, you know how tiring the process can be. Getting a slot was hard. On top of that, NISM exam centers are not always located in easy-to-reach places, so many people had to travel long distances just to sit for the exam. The exam is 3 hours long, and the fee is ₹3000, which is also on the higher side.

Because of this, a lot of people were waiting for a simpler exam to come with something with less complexity. That is exactly why NISM Series V-D was introduced. In this blog, we will explain what this exam covers, who should give it, and how you can prepare for it in simple words.

What Is Covered in NISM Series V-D?

NISM Series V-D is basically a combination of three different exams put together. It includes:

• The 12 chapters from NISM Series V-A
• The first 5 chapters from Series VIII (Equity Derivatives)
• The first 5 chapters from Series IV (Interest Rate Derivatives)

If you add these up, 12 + 5 + 5, you get 22 chapters in total. This is the full content of the exam.

The material is available online, but if you are serious about preparing, it helps to take a printout and keep a hard copy with you. This way, you can easily compare the content with Series V-A and understand what is new and what is already familiar.

Who Should Give This Exam?

There are mainly two types of people who are appearing for this exam right now.

1. People who are new to the mutual fund industry

Many people, especially from Tier 2 and Tier 3 cities, are getting interested in the mutual fund distribution business for the first time. It looks like a good and promising career option to them.

If you are also new and thinking about which exam to give first, the advice is simple  go directly for V-D. Why? Because if you give Series V-A first, you will still need to study that same portion again later when you give V-D. So it is better to prepare once, cover both topics together, and give one exam instead of two.

2. People who already have an ARN (existing distributors)

Some people gave their Series V-A exam a long time ago and have only been renewing it through CPE (Continuing Professional Education) since then. For this group, the news is a little tough - you will have to study everything again from scratch.

This is because the entire Series V-A syllabus is already included inside V-D. It is more like a refresher of knowledge, and to refresh something, you first need to relearn it properly.

Don't Be Afraid of the Derivatives Portion

A lot of people feel nervous when they hear the word derivatives. But here is the good news from someone who has actually studied for this exam.

Equity Derivatives concepts need to be understood really well, because a good number of questions come from this part. You will see:

• Payoff-based questions
• Strategy-based questions
• Basic concept questions

If your Equity Derivatives concepts are strong, Interest Rate Derivatives will not feel too difficult for you. The theory part just needs to be found, read, and understood properly. The questions that come are fairly typical in nature  once you understand the concept, attempting the question becomes much easier.

Good News: Negative Marking Has Been Reduced

This is one of the best changes in NISM V-D.

Earlier, in NISM Series XIII, the negative marking was 25%. This made people very cautious, and many would simply skip a question if they were even a little unsure.

In V-D, this has been reduced to just 10%.

Here is how it works in simple terms:

• If your answer is wrong, you lose 1 mark for the question, plus an extra 0.10 mark  so a total of 1.10 marks are cut.
• If you leave a question unattempted, you only lose 1 mark.

Since the penalty is now lower, you can afford to take a small risk. If you understand the question and feel reasonably confident about the answer, go ahead and attempt it. But this doesn't mean you should start guessing randomly. If you truly have no idea about a question, it is still better to leave it.

A Real Preparation Experience

One person shared their own exam experience. They got just about 2 days to prepare before the exam date, yet managed to clear it with a good score, well above their own target.

This shows that the exam is not extremely difficult, especially for mutual fund distributors, as long as they prepare well on the derivatives side. The syllabus book is quite big, so if you can find good notes or mock tests to study from, your preparation can move much faster.

How Many Days Should You Prepare For?

If you are completely new to the mutual fund industry, it is recommended to keep around 20 to 25 days for preparation.

Try to cover about 2 chapters a day. Reading the full syllabus properly may take around 10-12 days. After that, you will also need time to:

• Make your own notes
• Practice mock tests

Please do not go to the exam center without proper preparation, even though the exam only needs to be given once at a center. If you prepare well, there is a good chance you can clear it in your very first attempt.

Where to Find Study Material

• Practice mock tests are available on the official NISM website.
• Old NISM Series XIII videos (skip the currency derivatives portion, since that is not part of V-D) can still be useful for practice.
• Old mutual fund related videos are also helpful for revising concepts.

Final Thoughts

NISM Series V-D is not as scary as it sounds. Yes, the syllabus is big, with 22 chapters combining mutual funds, equity derivatives, and interest rate derivatives. But with the right preparation plan  around 20-25 days, focused study, and regular mock tests  you can clear this exam in your first attempt itself.

If you are planning to enter the mutual fund distribution business, this exam is a good starting point, since it also opens the door for you to become an SIF (Specialised Investment Fund) distributor in the future.