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.
Tactical asset allocation is also referred to as —
2.
Mutual funds permit individual investors to register up to __ bank accounts and non-individual investors to register up to __ bank accounts.
3.
Assets of real estate funds should be valued by —
4.
Most times, market price of a close-ended scheme's units is —
5.
With respect to mutual fund investing, minors are considered to be those below __ years of age.
6.
Under KYC norms, Ultimate Beneficial Owner (UBO) of a company is one who owns or is entitled to more than __ percent of its shares or profits.
7.
Risks that impact the entire economy are known as _____ risks.
8.
The unit capital in an open-ended fund —
9.
Capital protection funds take exposure to equity —
10.
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?
11.
Standard deviation is equal to the square root of variance.
12.
The unit capital in a close-ended fund —
13.
Index funds are _____funds.
14.
Demand draft issued against cash for Rs.50,000 or more will not be accepted as payment for investment in a mutual fund.
15.
Beta measures ________ risk.
16.
____ ratio indicates how much equity investors are prepared to pay in relation to the company’s earnings.
17.
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.
18.
Index funds are traded on exchanges.
19.
As per SEBI regulations, the minimum investment in equity and equity related instruments by sectoral funds and thematic funds shall be —
20.
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
21.
Certificates of Deposits issued by Banks are for ______.
22.
PEG ratio of less than one indicates the equity shares of the company are _________.
23.
A change or cancellation of nomination has to be made only by the first named unitholder.
24.
As per SEBI regulations, the minimum investment in real estate assets by real estate funds is —
25.
Risk premium' is the difference between _______.
26.
Investors have bought 20 crore units of a mutual fund scheme at Rs. 10 each. The scheme has thus mobilized 20 crore units X Rs. 10 per unit i.e., Rs 200 crore. An amount of Rs. 140 crore is invested in equities. The balance amount of Rs 60 crore, mobilized from investors, was placed in bank deposits. Interest and dividend receivable (accrued but yet not received) by the scheme is Rs 8 crore, scheme expenses payable (accrued but not paid yet) is Rs 4 crore. Calculate the scheme’s NAV per unit. (from NISM)
27.
Which team of the AMC handles its finances?
28.
Changes not forming part of the key documents are published via —
29.
Small cap stocks have ben defined as ____ company in terms of full market capitalization.
30.
The half yearly portfolio of schemes is available on the AMFI’s website and the website of AMC on or before the ___ day of the succeeding month.
32.
Which of the following is a measure of fluctuation in periodic returns in an equity mutual fund scheme? (from NISM)
33.
Short term capital gains in case of equity-oriented funds are taxed at —
34.
If you hold a bond till maturity, there will be no capital gains.
35.
In capital protection funds —
36.
How often should the Key Information Memorandum (KIM) be updated? (from NISM)
37.
As per SEBI regulations, investments of a balanced hybrid fund shall be —
38.
For non-resident investors, redemption payment is made by the AMC in ____.
39.
For investments (including SIPs and lump sum investments) in Mutual Fund schemes up to Rs. 50,000 per investor per year per mutual fund don't require to provide ID proof.
40.
Transaction charges are not levied on switches and STPs.
41.
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.
42.
The beneficiaries of a mutual fund are —
43.
Which of the following statements is ‘TRUE’ with respect to the Scheme Information Document (SID) and Statement of Additional Information (SAI)? (from NISM)
44.
The sponsor should have profits after providing for depreciation, interest and tax in —
45.
Infrastructure Debt Funds can be set up as —
46.
___ percent of unitholders can terminate the appointment of an AMC.
47.
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 —
48.
In the event of any issue with the AMC or mutual fund scheme, the investor can directly approach SEBI.
49.
Redemptions in open-ended schemes result in lowering the scheme's AUM.
50.
During a recession, real estate prices _____.
51.
The NAV of a scheme is Rs. 11 per unit. It charges exit load of 1 percent. Hence, the re-purchase price would be _____.
52.
One can invest in real estate in–
53.
As per SEBI regulations, large cap companies are defined as —
54.
Which are the two important documents for understanding about a mutual fund scheme?
55.
The 'core' portfolio of an investor will be invested according to the _____ needs and goals of the investor.
56.
Interval funds offer to buy back units intermittently, hence they don't need to be listed on the stock exchange.
57.
Upfronting of trail commission is allowed only in case of–
58.
The formula to calculate Book value per share is ____________.
59.
Transaction charges are levied on redemptions and SWPs.
60.
Treynor Ratio comparisons should ideally be restricted to _____ schemes.
61.
The Beta of the market, by definition is __.
62.
Mutual fund schemes are benchmarked to the ______________.
63.
In case of dividends paid out, tax is to be deducted at __ percent on the dividend amount if it exceeds ______.
64.
A single SAI is relevant for all the schemes offered by a mutual fund.
65.
The maximum amount an investor can invest in a mutual fund in cash/e-wallet per financial year is Rs _______.
66.
Mutual funds are not permitted to pay AUM based commissions upfront to distributors (subject to some exceptions).
68.
Exit loads can be used by the AMC to meet selling expenses.
69.
The AMC is appointed by —
70.
A bond issued at Rs. 1000 for one year offering interest of 8% would see its market price fall if interest rates increased to 8.5%.
71.
Computation of 'Alpha' returns should ideally be restricted to _____ schemes.
72.
The Net Asset Value (NAV) of the segregated portfolio shall be declared on a ____ basis.
73.
Under the SEBI guidelines, NFOs other than ELSS can remain open for a maximum of __ days.
74.
Certificates of Deposit issued by financial institutions are for __________.
75.
Support levels, resistance levels, break outs, etc. are terms used in _________ Analysis.
76.
The base year of the BSE Sensex is–
77.
How many (maximum) bank accounts can a residentindividual investor register with a mutual fund folio? (from NISM)
78.
Mutual fund investments would be subject to levy of stamp duty @ _____ of the amount invested.
79.
In FMPs, the scheme's portfolio is matched with the —
80.
Information regarding registration of investor grievances forms part of KIM.
81.
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?
82.
As per SEBI regulations, low duration funds can invest in debt and money market securities with Macaulay duration of —
83.
Fund managers faced redemption pressure in ____-ended funds.
84.
In case of partial redemption, units will be assumed to be redeemed on ______ basis.
85.
Statement of portfolio should be sent to all unitholders before the expiry of __ days from the close of each half year (i.e., 31st Mar and 30th Sep).
86.
An investment with a beta of 0.8 will move ____% when the market moves 10%.
87.
A floater fund can invest in fixed rate instruments converted to floating rate exposures using swaps/derivatives.
88.
With effect from 1 April 2021, mutual funds have to rename their dividend reinvest plans to ____________.
89.
Measurement of credit risk is undertaken through —
90.
In case of fund of funds scheme, investing in liquid schemes, index fund scheme and exchange traded funds, the total expense ratio of the scheme including weighted average of the total expense ratio levied by the underlying scheme(s) shall not exceed ____ per cent of the daily net assets of the scheme.
91.
The POA holder can undertake all operations in the investor's mutual fund account.
92.
Which of the following regulates mutual funds in India? (from NISM)
93.
For KYC, PAN card and photo work as —
94.
Dividends paid out only include income earned by the scheme. There is no capital repayment component in it.
95.
Company specific risks are known as _____ risks.
96.
A scheme is considered to be suitable for an investor if its investment objective matches with the investor's needs.
97.
AMCs can charge investment management and advisory fee on unclaimed amounts at a maximum per annum rate of —
98.
Mutual funds need to comply with RBI’s regulations regarding investment in the money market, investments outside the country, investments from people other than Indian residents in India, etc.
99.
Tier 1 and Tier 2 bonds issued by banks and are perpetual in nature, are popularly called _______.
100.
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. 2,20,000 on February 9, 2018. How much would be his taxable capital gains?
