What is the NISM VB exam?
The NISM Series V-B: Mutual Fund Foundation Certification Examination is conducted by the National Institute of Securities Markets (NISM), an educational initiative of SEBI. It covers the fundamentals of mutual funds in India — what they are, how they are structured and regulated, the main scheme types, and how returns, costs, and taxation work. It is a foundation-level exam and is distinct from the Series V-A Mutual Fund Distributors certification, which is the one required for an ARN.
What this practice test covers
- Investment landscape: saving versus investing, risk and return basics
- Concept and role of mutual funds in India
- Legal structure of mutual funds: sponsor, trustee, AMC, and custodian
- Scheme types: open-ended, close-ended, equity, debt, and hybrid
- Net asset value, expenses, loads, and total expense ratio
- Return measures, benchmarking, and scheme performance
- Taxation of mutual fund investments and investor services
Passing the NISM VB exam
NISM VB is a 50-mark computer-based test of 50 questions (1 mark each) to be completed in 2 hours, with a passing score of 50%. Unlike most NISM certifications, this exam has no negative marking, so there is no penalty for attempting a question you are unsure about. NISM can revise its criteria, so always verify the current passing marks and marking scheme on nism.ac.in before registering.
Why practice with mock tests
Reading the official workbook builds conceptual understanding, but a timed mock test reveals what you can actually recall under exam conditions. Because NISM VB is a foundation paper covering a broad set of definitions and structures, full-length mocks help you find the topics you keep confusing and remove surprises on exam day.