Aumsetu
← Mock Test
Aumsetu
← Mock Test
For the Mutual Fund – Specialized Investment Fund (SIF) Distributors exam, per the official workbook (Version March 2026). The derivatives maths below is where most candidates lose marks — master it, then drill the free mock tests.
| NAV / AUM / Units | NAV = (Assets − Liabilities) ÷ Units · AUM = NAV × Units · Units = Amount ÷ NAV |
| Redemption price | NAV × (1 − exit load%); sale price = NAV (no entry load) |
| Returns | Simple = (Sell − Buy) ÷ Buy · Total = (Gain + Income) ÷ Cost · HPR = (Interest + Gain) ÷ Price |
| CAGR | (FV ÷ PV)^(1/years) − 1 — doubles in 3 yrs ⇒ ≈ 26% |
| Real / post-tax | Real ≈ Nominal − Inflation · Post-tax = Nominal × (1 − tax) |
| Weighted return | Σ (weightᵢ × returnᵢ); Beta move ≈ β × market; TRI ≈ PRI + dividend yield |
| Tax (equity fund) | STCG (≤12 m) 20%; LTCG (>12 m) 12.5% above ₹1.25 lakh/yr; debt funds at slab; dividend at slab + 10% TDS > ₹10,000; stamp duty 0.005% buy / 0.015% transfer; STT only on equity redemption/sale |
| Timelines | NFO ≤15 days · allot/refund 5 business days · KIM 6-monthly · CAS monthly/half-yearly · grievance 21 days · attribute-change exit 30 days · 3 holders · 10 nominees · TER: index/ETF 0.90%, FoF 0.90/2.10/1.85% |
| Contract value | Futures price × Lot size (index derivative value ≥ ₹15 lakh at introduction, lot set for ₹15–20 lakh) |
| Initial margin | Margin% × Contract value — paid by BOTH buyer and seller; higher for volatile underlyings |
| Daily MTM | (Today’s settlement − previous reference) × Lot — losers pay, gainers receive, daily |
| Basis | Spot − Futures (negative when futures > spot); becomes zero at expiry (convergence) |
| Cost of carry (equity) | Financing interest − Dividend; break-even futures = Spot + net carry |
| Fair futures price | F = S × (1 + r − q)^(days/365) (r = financing, q = yield) — only the NET carry counts |
| Arbitrage | Traded > fair ⇒ cash-and-carry (buy cash, sell futures); traded < fair ⇒ reverse cash-and-carry (sell cash, buy futures) |
| Calendar spread | Far-month − Near-month price = carry between the months; long one month + short another; low-risk, both legs together |
| Payoff shape | Linear; long gains when price rises, short gains when price falls — both unlimited either way |
| Expiry (equity) | NSE: Tuesday; BSE: Thursday (SEBI uniform expiry framework); positions compulsorily settled at the cash close |
| Intrinsic value | Call: max(Spot − Strike, 0) · Put: max(Strike − Spot, 0) — never negative; ATM/OTM = 0 |
| Time value | Premium − Intrinsic value (ATM/OTM premium is ALL time value) |
| Break-even | Call BEP = Strike + Premium · Put BEP = Strike − Premium (same BEP for buyer and writer) |
| Long put max profit | Strike − Premium (index can only fall to zero) |
| Risk profile | Buyer: loss ≤ premium, no margin. Writer: max gain = premium, loss large/unlimited, margin required, can be assigned |
| Total premium | Premium per unit × Lot size × Lots |
| Moneyness | Call ITM when Spot > Strike; Put ITM when Spot < Strike; ATM = strike closest to spot |
| India specifics | All index and stock options are EUROPEAN (exercise only at expiry); index options cash-settled at the closing spot; one weekly-expiry benchmark index per exchange |
| Strategy | Build | Numbers |
|---|---|---|
| Bull CALL spread | Buy lower-strike call, sell higher-strike call (net DEBIT) | BEP = lower strike + net premium · Max profit = (X₂ − X₁) − net premium · Max loss = net premium |
| Bull PUT spread | Sell higher-strike put, buy lower-strike put (net CREDIT) | Max profit = net credit · BEP = higher strike − net credit · Max loss = (X₂ − X₁) − net credit |
| Bear CALL spread | Sell lower-strike call, buy higher-strike call (net credit) | Mirror of the bull call spread |
| Bear PUT spread | Buy higher-strike put, sell lower-strike put (net debit) | Mirror of the bull put spread |
| Types | Vertical = same expiry, different strikes · Horizontal/calendar = same strike, different expiries · Diagonal = both differ · All spreads: limited profit, limited loss | |
| Portfolio hedge ratio | (Portfolio value × Beta) ÷ (Futures price × Lot) = index futures to SHORT |
| Bond hedge lots | Position value ÷ ₹2,00,000 (single bond IRF notional; lot = 2,000 units at ₹100) |
| Direction rules | Rates ↑ expected → SELL bond futures / BUY puts (bond prices fall). Rates ↓ expected → BUY bond futures / BUY calls. MIBOR (rate) futures are opposite: rate ↑ → go LONG MIBOR futures |
| Hedge logic | Long hedge locks a future PURCHASE price; short hedge locks a future SALE price; loss on one leg ≈ gain on the other (some basis risk stays) |
| Duration hedging | A multi-bond portfolio is hedged on weighted-average modified duration (duration-based hedge ratio) |
| IRF specifics | Tick ₹0.0025 (tick value = 0.0025 × 2,000 = ₹5); monthly single-bond G-sec futures expire the LAST THURSDAY; 91-day T-bill futures are CASH settled; the successful product is the cash-settled 10-yr GOI single bond future (Dec 2013); CBIF value ≥ ₹2 lakh |
| Borrower’s hedge | A future borrower fearing a rate rise SELLS IRF — the futures gain reduces the effective borrowing cost |
Aumsetu — free tools for Mutual Fund Distributors. This sheet is an independent, free study aid based on the publicly published NISM-Series-V-D workbook (Version March 2026). It is not affiliated with, endorsed by, or a product of NISM or SEBI. Always study the official workbook for the exam.