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.
For a sector fund or a mid-cap fund with limited investment options, a large fund size may be _________.
2.
In capital protection funds —
3.
While advertising the performance of a particular scheme, In case the number of schemes managed by the fund manager of that scheme is more than six, then the AMC may disclose the total number of schemes managed by that fund manager along with the performance data of ___________.
4.
It is better not to lose Rs. 5,000 than to gain Rs. 5,000.' Which behavioural bias does this refer to?
5.
In the case of investments by a Power of Attorney (PoA) holder on behalf of an investor, KYC requirements have to be complied with only for the investor.
6.
When a scheme charges exit load, the repurchase price is ______ than the NAV.
8.
A scheme may invest in other schemes of the same Mutual Fund or other Mutual Funds. This will be limited to not more than __ percent of the net asset value of the scheme. (not applicable to Fund of Funds)
9.
Treasury Bills are issued by ____.
10.
What is the maximum number of joint holders a mutual fund investment can have?
11.
As per SEBI regulations, investments of a conservative hybrid fund shall be —
12.
As per SEBI regulations, the minimum investment in equity and equity related instruments of large cap companies in case of large cap funds shall be —
13.
AMFI's guidelines and code of conduct for intermediaries is known as–
14.
Within ___ day(s) of the trustees’ decision, the AMC shall issue a public communication giving the details of the dividend including the record date.(this is not applicable for liquid schemes and debt schemes with dividend distribution frequency ranging from daily to monthly.)
15.
The fund accountant need not register with SEBI.
16.
When a security's credit rating is downgraded, yield expectations ____.
17.
“Mutual fund investments are subject to market risks. Please read the scheme related documents carefully before investing.” – These lines are part of any marketing communication by mutual fund companies.
18.
In case of actively managed funds, the fund manager has —
19.
The mutual fund's annual report or abridged summary must be mailed to investors no later than ____months from the date of closure of the relevant financial year i.e., March 31 each year.
20.
_______ are close-ended debt funds. (from NISM)
21.
Lower the safety of the bond or debenture, the investor expects–
22.
Small investors, who may not be taxpayers and may not have PAN/bank accounts, such as farmers, small traders/businessmen/workers are allowed cash transactions for the purchase of units in mutual funds to the extent of Rs. ___________ per investor, per mutual fund, per financial year.
23.
You invested in a fund at NAV of Rs 12. NAV rose to Rs 15. What is your return on investment (simple return)?
24.
A first time investor invests Rs 25,000. The scheme's NAV at the time of investment is Rs 43.21. After applying transaction charges, how many units will the investor get?
25.
NRI investors investing through an NRE account, should register __________ with the mutual fund.
26.
For redemptions and switch outs in equity oriented funds and debt funds (except liquid funds), the cut off time is ____.
27.
Commodity derivatives are–
28.
Responsibility for settlement of mutual fund transactions through the stock exchange platforms is with —
29.
Final scheme related documents (after incorporating SEBI’s observations) have to be hosted on AMFI’s website (www.amfiindia.com) ___days before the issue opens.
30.
At least ___ percent of the directors of the AMC should be independent directors.
31.
Improving risk-adjusted returns of a portfolio implies–
32.
Who calculates the NAV of the schemes?
33.
Which of the following statements is ‘TRUE’ with respect to the Scheme Information Document (SID) and Statement of Additional Information (SAI)? (from NISM)
34.
Assuming inflation at 8% p.a., how much would goods/services worth Rs 10,000 today cost after 30 years?
35.
Which mutual fund trading platform has the mutual fund industry set up under AMFI?
36.
Rajesh filed a complaint with a mutual fund in which he stated that the scheme's objective did not match with his requirements. Is his complaint valid?
37.
Mutual funds are constituted as ‘Trusts’ in India. Who are the beneficiaries of the trust? (from NISM)
38.
Segregated portfolio shall mean a portfolio, comprising of ____________ affected by a credit event, that has been segregated in a mutual fund scheme.
39.
GST is payable by any person making taxable supplies of goods/services and whose annual turnover exceeds Rs. __ lakhs.
40.
Typically, towards the maturity of a close-ended scheme, the market price _____ the NAV.
41.
Investors can buy units of a close-ended scheme from the fund —
42.
A security with ____ maturity will fluctuate more as compared to a security with ____ maturity.
43.
One can invest in real estate in–
44.
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.
45.
KIM shoud be updated within __ month(s) from the end of the half-year.
46.
SAI needs to be updated within __ month(s) of every financial year.
47.
The distributor receives upfront commission, if any, ______.
48.
Short term capital gains in case of equity-oriented funds are taxed at —
49.
As per SEBI regulations, medium duration funds can invest in debt and money market securities with Macaulay duration of —
50.
The POA holder can undertake all operations in the investor's mutual fund account.
51.
Mutual funds pay tax on income earned.
52.
The unit capital in a close-ended fund —
53.
In a bottom-up investment approach, the portfolio manager evaluates the ______first and finally the ______.
54.
A high P/E ratio always indicates that a company's stock is expensive.
55.
As per SEBI regulations, money market funds can invest in money market instruments having maturity up to —
56.
___________ indicates how much money can be generated per unit of mutual fund in case the scheme is liquidated. (from NISM)
57.
As per SEBI regulations, the minimum investment in equity by dividend yield funds shall be —
58.
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.
59.
‘Once it is finalized, a mutual fund scheme’s benchmark cannot be changed at a later date.’ State whether the statement is True or False. (from NISM)
60.
As per SEBI regulations, medium to long duration funds can invest in debt and money market securities with Macaulay duration of —
61.
A children's fund has a lock-in of —
62.
The minimum investment and redemption limits specified by the mutual fund for the schemes will also apply to an STP.
63.
An investor can have one folio number across multiple schemes of the same mutual fund provided holding pattern is the same.
64.
In terms of capital gains, long-term is defined as a holding period of more than _____ year(s) in case of equity-oriented funds.
65.
Debt securities that are to mature within a year are called ________.
66.
April 1, 2023 onwards, deemed residual maturity of AT 1 and AT 2 bonds are as follows:
67.
NAV of a scheme is equivalent to —
68.
When the performance of a particular scheme is advertised, the advertisement shall also include the performance data of all the other schemes managed by the fund managers of that particular scheme.
69.
For an investor to get a quick sense of the level of risk involved in a mutual fund scheme, SEBI suggested a simplified framework known as ______. (from NISM)
70.
The relationship between interest rates and bond prices is —
71.
Mutual funds can offer loans.
72.
If an investor does not specify the percentage share of each nominee, the share is assumed to be ____.
73.
In which segment of the BSE can investors transact in mutual funds?
74.
AUM is calculated by —
75.
Herd mentality implies–
77.
In case of arbitrage funds, the minimum investment in equity and equity related instruments shall be —
78.
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?
79.
What does 'credit risk' mean in case of bonds and debentures?
80.
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.
81.
While planning for an NFO, the Scheme Information Document needs to be approved by ___________.
82.
Mutual funds can buy and sell securities only on delivery basis. (from NISM)
83.
What is the real rate of return? – from NISM mock test
84.
Company specific risks are known as _____ risks.
85.
Rebalancing is required in the case of —
86.
Parking of funds in Short-term deposits with all scheduled commercial banks shall be limited to __ percent of the net assets of the scheme. (subject to conditions and stipulations)
87.
Which of the following is a measure of fluctuation in periodic returns in an equity mutual fund scheme? (from NISM)
88.
In case of KYC, the Ultimate Beneficial Owner (UBO) requirements are not applicable to listed companies or their subsidiaries.
89.
Governments and public sector companies issue ____, while private sector companies issue ____.
90.
Investors exempt from providing PAN, have to quote the ________ issued by the KRA and submit a copy of the letter with the application form.
91.
Which of the following statements is True? (from NISM)
92.
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.
93.
KIM should be updated every —
94.
No mutual fund scheme shall own more than ____ of perpetual bonds by a single issuer.
95.
Which entity regulates the banking system and money markets?
96.
Fund-of-funds investing in other equity mutual fund schemes are classified as ______ schemes.
97.
In case of partial redemption, units will be assumed to be redeemed on ______ basis.
98.
Measurement of credit risk is undertaken through —
99.
Index funds are _____funds.
100.
The day-to-day management of a scheme is handled by —
