FinanceInsights has created mock tests for the NISM Mutual Fund Distributors V-A exam. Questions are based on NISM Mutual Fund Distributors V-A Workbook Version – Dec 21.
FinanceInsights has created a bank of about 700 questions.
The mock test is based on the actual examination. Every time you take the mock test, 100 random questions from the question bank will be presented. Each question will carry 1 mark each and should be completed in 2 hours. The passing score for the examination is 50 percent. There shall be no negative marking.
Click Next to continue.
1.
The Net Asset Value (NAV) of the segregated portfolio shall be declared on a ____ basis.
2.
As per SEBI regulations, the minimum investment in real estate assets by real estate funds is —
3.
A change or cancellation of nomination has to be made only by the first named unitholder.
4.
What minimum percentage of the mutual fund scheme corpus must be invested in equity and related instruments in the case of Equity Linked Savings Schemes (ELSS)? (from NISM)
5.
ETFs have a single price per day at which the investor can either enter or exit the fund.
6.
Changes not forming part of the key documents are published via —
7.
Redemption from which of the following mutual fund schemes would attract Securities Transaction Tax (STT) for an investor? (from NISM)
8.
For KYC, PAN card and photo work as —
9.
Let's say you can purchase 100 units today at Rs 10,000; at inflation of 8% p.a., how many units would you be able to purchase after 10 years for the same amount?
10.
Short term capital loss is to be set off against ____________.
11.
______ Analysis throws up trends for the future direction of the market price of stocks.
12.
In case of SIP investments, transaction charges are levied only if the total investment commitment amounts to —
13.
Which of the following statements is True? (from NISM)
14.
A security that was considered illiquid at the time of scheme maturity or winding up of the scheme, which later generates substantial cash within 2 years, should be —
15.
Which agency issues the acknowledgement for having completed the KYC process for an investor?
16.
As per SEBI regulations, the minimum investment in physical assets by real estate funds is —
17.
A NRI returning to India can ___________.
18.
Long term capital gains in case of equity-oriented funds are taxed at —
19.
SEBI has mandated AMCs to put in place a due diligence process to regulate distributors who qualify any one of the following criteria:
20.
Minimum investment of a floater fund in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/derivatives) shall be —
22.
Mark-to-Market valuation of a scheme is done on a —
23.
Gold held by a gold exchange traded fund shall be valued at the AM fixing price of London Bullion Market Association (LBMA) in US dollars per troy ounce for gold having a fineness of _____ parts per thousand.
24.
In case of STP, transfer of funds from the source scheme is equivalent to redemption. Exit loads and taxes will apply like any other redemption transactions.
25.
Market price of a close-ended scheme —
26.
As per SEBI regulations, the minimum investment in equity and equity related instruments in case of multi-cap funds shall be —
27.
Once an investor has completed the KYC process, he can use it for all his investments (he doesn't need to go through the KYC process repeatedly).
28.
In case of a change of distributor code in a folio, no commission would be payable to any distributor, neither the old one nor the new one.
29.
With respect to mutual fund investing, minors are considered to be those below __ years of age.
30.
Investors cannot sue the trust but they can file suits against trustees
31.
A Power of Attorney holder can make a nomination on behalf of the investor.
32.
All investors investing up to Rs 50,000 per year per mutual fund don't need to provide PAN.
33.
Rajesh invested Rs. 1,00,000 in an equity- oriented mutual fund scheme in 2017 and the value of the investments as on January 31, 2018 was Rs. 2,00,000. He sold the investments completely and realised a value of Rs. 1,80,000 on February 9, 2018. How much capital gains tax would he pay?
34.
At least __ percent of the ELSS funds should be invested in equity and equity-linked securities.
35.
In a bottom-up investment approach, the portfolio manager evaluates the ______first and finally the ______.
36.
As per the SEBI guidelines, how often should the mutual fund scheme’s portfolio be published? (from NISM)
37.
As per SEBI regulations, ultra short duration funds can invest in debt and money market securities with Macaulay duration of —
38.
The formula to calculate dividend yield is ___________.
39.
As per SEBI regulations, minimum investment in equity & equity related instruments of large cap, midcap and small cap companies shall be —
40.
Rolling returns are ______ calculated for multiple consecutive holding periods.
41.
Mutual fund investments would be subject to levy of stamp duty @ _____ of the amount invested.
42.
Registrar and Transfer Agency function must be independent of the Asset Management Company, and it cannot be retained in-house. State whether this statement is True or False. (from NISM)
43.
A mutual fund's trustees can be —
44.
In case of closed-ended schemes, the NAV is calculated ____
45.
What does NFO stand for?
46.
An investor's need to take risks arises from his need to–
47.
When a security is not traded on any stock exchange for a period of ______ days prior to the valuation date, the scrip must be treated as a ‘non-traded’ scrip.
48.
Retail investors can become part of institutional investing through mutual funds.
49.
TDS applicable for non-resident investors is ___________.
50.
When the mutual fund scheme has been in existence for more than three years, performance advertisement of mutual fund schemes shall be provided in terms of CAGR for the past —
51.
In the non-equity-oriented funds, the rate of long-term capital gains tax is ______. (from NISM)
52.
The unit capital of a scheme is calculated as —
53.
GST on commission paid to distributors is charged to the scheme.
54.
In case of ETFs, there could be a gap between the market price of the ETF and its NAV.
55.
Half Yearly Disclosures (unaudited financial results) should be uploaded on the mutual fund website within __ month(s) from the close of each half year (i.e., 31st Mar and 30th Sep) [applicable for schemes other than debt and money market schemes].
56.
The total expense ratio of close-ended equity-oriented scheme(s) shall not exceed ____ per cent of the daily net assets of the scheme.
57.
Unsystematic risk can be reduced through diversification. State whether True or False. (from NISM)
58.
The minimum application amount specified for the target scheme will not apply to investments made under a transfer of Income Distribution cum capital withdrawal plan.
59.
If an investor does not specify the percentage share of each nominee, the share is assumed to be ____.
60.
Once an NRI becomes a Resident Indian, he needs to open a ___________.
61.
For listing of mutual fund units, mutual funds need to comply with regulations by —
62.
As per the fair valuation principles laid out by SEBI, it is mandatory to disclose the valuation policy in __________. (from NISM)
63.
When a fund imposes a restriction on redemptions, in case of redemption requests exceeding Rs 2 lakh, the fund will ____.
64.
Units in a mutual fund scheme are offered to investors for the first time through _________.
65.
As per SEBI regulations, medium duration funds can invest in debt and money market securities with Macaulay duration of —
66.
Once a benchmark index is selected, a fund cannot change it.
67.
A children's fund has a lock-in of —
68.
Typically, towards the maturity of a close-ended scheme, the market price _____ the NAV.
69.
Transaction costs in real estate are ______.
70.
Minimum investment required in AA+ and above corporate bonds for corporate bond funds is —
72.
Improving risk-adjusted returns of a portfolio implies–
73.
A minor’s account is frozen for operation by the guardian on the day the minor attains the age of majority and no further customer-initiated transactions shall be permitted till the status is changed from minor to major.
74.
NRI investors investing through an NRO account, should register _______ with the mutual fund.
75.
If there is a change in the status of the investor under FATCA after the information is first provided, then the same has to be reported to the mutual fund within __ days.
76.
The spouse's proof of address can be used for the investor.
77.
For NRI investors ___ is the sole identification number for KYC compliance.
78.
Tactical asset allocation is also referred to as —
79.
In terms of capital gains, long-term is defined as a holding period of more than _____ year(s) in case of non-equity- oriented funds.
80.
If interest rates are expected to fall, a fund manager will invest in ____________.
81.
The persons responsible for protecting the interests of the fund's investors are —
82.
While planning for an NFO, the Scheme Information Document needs to be approved by ___________.
84.
Who maintains investor records, issues account statements, allots or redeems units, processes purchase/redemption/switch requests, dividends, etc?
85.
In case of undertaking SIP for a minor, SIP will be registered only till the date of the minor attaining majority.
86.
Rise in interest rates ____ real estate prices.
87.
An investor can use his credit card to invest in mutual funds.
88.
The returns on investment without factoring inflation is known as —
89.
Income tax at the rate of 10 percent (without indexation benefit) on long-term capital gains are charged on long term capital gains exceeding Rs.____ provided transfer of such units is subject to STT.
90.
For purchases and switch ins in equity oriented funds and debt funds (except liquid funds), the cut off time is ____.
92.
KYC is required to comply with —
93.
As per SEBI regulations, overnight funds can invest in overnight securities having maturity of —
94.
Long term capital gains in case of non-equity-oriented funds are taxed at —
95.
In-person verification is mandatory as part of the KYC process.
96.
FATCA compliance is required if the citizenship/nationality/place of birth/tax residency are places other than India for all categories of investors.
97.
A scheme shall not invest more than __ percent of its NAV in debt instruments (money market and non-money market instruments) issued by a single issuer which are rated not below investment grade. (subject to certain stipulated exceptions)
98.
Calculate the NAV of the scheme with the following information: Value of stocks: Rs. 150 crores; Value of bonds: Rs. 67 crores; Value of money market instruments: Rs. 2.36 crore; Dividend accrued but not received: Rs. 1.09 crore; Interest accrued but not received: Rs. 2.68 crore; Fees payable: Rs. 0.36 crore; No. of outstanding units: 1.90 crore
99.
Redemption/re-purchase cheques should be dispatched to investors within __ working days from the date of receipt of transaction request.
100.
Which of the following regulates mutual funds in India? (from NISM)
