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.
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1.
SEBI has mandated mutual funds/AMCs to disclose on their websites the total commission and expenses paid to distributors with respect to retail and HNI investors who satisfy one or more of the following conditions:
2.
Minimum investment required in AA and below corporate bonds for credit risk funds is —
3.
Let's assume all days except Tuesday, Saturday and Sunday are business days. Rakesh submits an application on Monday to buy units of an equity mutual fund scheme for Rs. 3,00,000. The funds are realized on Wednesday by 5 pm. What NAV will be applied?
4.
Commodity derivatives are–
5.
Mutual funds offer options that can help investors defer their tax liability.
6.
At how many points did the BSE Sensex start?
7.
Fresh investments in open-ended schemes have no impact on the scheme's AUM.
8.
Computation of 'Alpha' returns should ideally be restricted to _____ schemes.
9.
Ideally, an investor's portfolio should be divided into ______ and _______ portfolios.
10.
The Net Asset Value (NAV) of the segregated portfolio shall be declared on a ____ basis.
11.
If interest rates are expected to fall, a fund manager will invest in ____________.
12.
______ Analysis throws up trends for the future direction of the market price of stocks.
13.
_______ the Treynor Ratio, better the scheme is considered to be.
14.
Which amongst the following is a measure of risk-adjusted returns of mutual fund scheme? (from NISM)
15.
In case of death of a joint holder in a mutual fund investment, If the folio has nominations, the right of the ______ will take precedence.
16.
As per SEBI regulations, minimum investment in infrastructure-based securities by infrastructure funds should be —
17.
In derivatives, basis risk arises due to _________.
18.
Let's say risk free return is 5 percent, and a scheme with standard deviation of 0.5 percent earned a return of 7 percent. Calculate its Sharpe Ratio.
19.
FATCA compliance is required if the citizenship/nationality/place of birth/tax residency are places other than India for all categories of investors.
20.
Transaction charges are not levied in case of purchases through a stock exchange.
21.
Investments by a scheme are done as per —
22.
The Beta of the market, by definition is __.
23.
Once a mutual fund folio is created as a jointly held account, a joint holder can be change at any time.
24.
Legal charges related to recovery of investments in a scheme's segregated portfolio in excess of the TER limits, if any, shall be borne by the AMC.
25.
Which debt fund can invest in government securities across different maturities? This fund needs to have minimum investments in G-Secs of 80 percent of total assets.
26.
When a fund imposes a restriction on redemptions, there will be no restriction on redemptions up to Rs ___ lakh(s).
27.
What is the maximum number of nominees an investor can have per scheme?
28.
Units of seggregated portfolios are required to be listed on the stock exchange.
29.
KIM shoud be updated within __ month(s) from the end of the half-year.
30.
For NRI investors ___ is the sole identification number for KYC compliance.
31.
Rahul, a mutual fund distributor, has been instructed to buy units of XYZ equity fund for a Mahesh, his client. He believes this scheme is not suitable for Mahesh. Accordingly, he advises Mahesh to avoid this scheme. Is he violating SEBI Investment Adviser 2013 guidelines?
32.
To reflect the payout of dividend, the NAV will be adjusted ____ record date.
33.
As per SEBI regulations, liquid funds can invest in debt and money market securities having maturity of —
34.
In case of an equity savings fund, the minimum investment in equity and equity related instruments and the minimum investment in a debt shall be —
35.
Gating or restriction on redemption in mutual funds can be imposed only during ________.
36.
An investor can use his credit card to invest in mutual funds.
37.
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.
38.
_________ the modified duration of a debt security, greater is its price volatility in response to changes in interest rates.
39.
A mutual fund's trust deed is executed between —
40.
Long term investment decisions are taken using _______ Analysis.
41.
Calculate the weighted average maturity of a debt scheme which has 70% of its portfolio in 4-year securities and balance 30% in 1-year securities.
42.
In case of receiving bonus units, capital loss on sale of original units will not be allowed if the original units were bought within a period of _ months prior to the record date for the bonus issue and sold off within a period of _ months after the record date.
43.
AMFI's guidelines and code of conduct for intermediaries is known as–
44.
Portfolio concentration leads to _______ risk.
45.
A scheme is considered to be suitable for an investor if its investment objective matches with the investor's needs.
46.
When a security's credit rating is downgraded, yield expectations ____.
47.
Mutual Fund Schemes (other than IPO of ELSS) to remain open for subscription for maximum of __ days.
48.
In this fund, investment in equity/debt is managed dynamically.
49.
The AMC and schemes can have the same auditor.
50.
Once a benchmark index is selected, a fund cannot change it.
51.
The valuation policies and procedures of securities held by schemes shall be reviewed at least once in a ________ by an independent auditor to seek to ensure their continued appropriateness.
52.
Risk premium' is the difference between _______.
53.
Allocating investible funds across different equity securities is termed as asset allocation.
54.
In case of valuation of convertible debentures and bonds, the non-convertible and convertible components shall be valued together.
55.
A debt fund manager will _____ the duration of the portfolio by moving into long term maturities if interest rates are expected to fall.
56.
The investor cannot specify the percentage distribution between the nominees.
57.
The unit capital of a scheme is calculated as —
58.
PEG ratio greater than one indicates the equity shares of the company are ________.
59.
Transaction charges are levied even if the investor does not invest through a distributor.
61.
If the scheme has been in existence for more than six months but less than one year, in the advertisement, __________________from the last day of month-end preceding the date of advertisement shall be provided.
62.
Let's say the sale and purchase transactions of a scheme for a year amounted to Rs. 10,000 crores, and the average size of net assets is Rs. 5,000 crores; calculate the scheme's portfolio turnover ratio. Also, calculate the average holding period of investments in the scheme's portfolio.
64.
In a multi asset allocation fund, foreign securities are treated as a separate asset class.
65.
Real estate can generate —
66.
Fund managers faced redemption pressure in ____-ended funds.
67.
The appointment of an AMC can be terminated by —
68.
SIP investing is different from rupee cost averaging.
69.
In case of ETFs, there could be a gap between the market price of the ETF and its NAV.
70.
At what price are the bonus units issued to the unitholder? (from NISM)
71.
What is MF Utilities?
72.
For redemptions and switch outs in equity oriented funds and debt funds (except liquid funds), the cut off time is ____.
73.
Short term capital gains in case of equity-oriented funds are taxed at —
74.
The transparency levels in mutual funds are very low. State whether True or False. (from NISM)
75.
Index funds are designed to perform better than the index tracked.
76.
In what form do mutual fund distributors earn revenue? (from NISM)
77.
An investment for a minor cannot have joint holders.
78.
Governments and public sector companies issue ____, while private sector companies issue ____.
79.
Gold sector funds invest in _________.
80.
Custodian of the fund —
81.
Mutual funds are not permitted to pay AUM based commissions upfront to distributors (subject to some exceptions).
82.
Fall in interest rates will result in–
83.
SEBI has permitted celebrity endorsements at the industry level for the purpose of increasing awareness of Mutual Funds as a financial product category. (subject to conditions)
84.
Each scheme’s NAV is required to be disclosed at the ___ of each business day.
85.
Schemes in the process of winding up are required to be listed on the stock exchange.
86.
In case of interval funds, the maximum duration of the interval period is —
87.
A debt fund had investments in debentures of ABC Ltd to the extent of 5% of scheme's NAV. The debentures defaulted and the scheme had a 50% withdrawal from its investors. Since there are no buyers for the debentures, the remaining scheme holders now have 10% of the scheme portfolio in these debentures. Hence they are at a disadvantage. What is the solution for this?
88.
With effect from 1 April 2021, mutual funds have to rename their dividend plans. The dividend pay-out plan is renamed as ____________.
89.
Who handles the day-to-day management of the mutual fund? (from NISM)
90.
In leveraged contracts, one takes —
91.
The three most important factors to evaluate investments are —
92.
Investors can get customized portfolios through —
93.
The total expense ratio of close ended and interval scheme(s) other than close-ended equity-oriented schemes shall not exceed ____ per cent of the daily net assets of the scheme.
94.
A scheme may invest in unlisted non-convertible debentures up to a maximum of __ percent of the debt portfolio of the scheme subject to such conditions as may be specified by SEBI from time to time.
95.
As per SEBI regulations, the minimum investment in equity and equity related instruments by ELSS funds shall be —
96.
What is 'Confirmation bias'?
97.
As per the SEBI guidelines, how often should the mutual fund scheme’s portfolio be published? (from NISM)
98.
Cash and cash equivalents donot carry _______ risk.
99.
A single SAI is relevant for all the schemes offered by a mutual fund.
100.
As per SEBI regulations, the minimum investment in physical assets by real estate funds is —
