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.
What is the maximum number of nominees an investor can have per scheme?
2.
Who decides the quantum of dividend and the record date of a scheme?
3.
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%.
4.
In which segment of the NSE can investors transact in mutual funds?
5.
The unaudited financial results of the mutual fund should be displayed before the expiry of ___ month(s) from the close of each half yearon the AMC website.
6.
Investors can pledge their mutual fund units.
8.
SEBI needs to approve scheme related documents.
9.
As per SEBI regulations, the sponsor should be carrying on business in financial services for —
10.
In case of change in fundamental attributes of a scheme, the AMC needn't advertise the same in daily newspapers. Only unitholders need to be informed.
11.
The process of valuing each security in the investment portfolio of the scheme at its current market value is called ___________.
12.
The principle of caveat emptor (let the buyer beware) applies to mutual fund investments.
13.
Large-cap stocks have been defined as ____ company in terms of full market capitalization.
14.
All existing investors shall be allotted equal number of units in the segregated portfolio as held in the main portfolio as on the day of the credit event.
15.
Which amongst the following asset categories can also be purchased for consumption purposes apart from an investment? – from NISM mock test
16.
Online mutual fund platforms don't permit SIP, STP and SWP transactions.
17.
A proposed investor i.e., someone who has not invested in the scheme, has the same rights to proceed against the AMC or trustees as existing investors.
18.
The sponsor should have profits after providing for depreciation, interest and tax in —
19.
Exit loads can be used by the AMC to meet selling expenses.
20.
Transaction charges are not levied on switches and STPs.
21.
Tactical asset allocation is also referred to as —
22.
No mutual fund (across all schemes) shall own more than ___ of perpetual bonds issued by a single issuer.
23.
In case of undertaking SIP for a minor, SIP will be registered only till the date of the minor attaining majority.
25.
Capital protection funds take exposure to equity —
26.
Tactical asset allocation is typically suitable for–
27.
An investor's ability to take risks implies–
28.
Scheme returns published in MF advertisements are often factoring in exit load, if any.
29.
Allotment of units or refund of money, as the case may be, should be done within _ business days of closure of the NFO (within _ working day(s) in demat accounts).
30.
What is the real rate of return? – from NISM mock test
31.
Only one scheme is permitted in case of Index funds and ETFs.
32.
Treasury Bills are issued by ____.
33.
Standard deviation is equal to the square root of variance.
34.
An investor can use his credit card to invest in mutual funds.
35.
The minimum investment and redemption limits specified by the mutual fund for the schemes will also apply to an STP.
36.
Trail commission is calculated as a percentage of —
37.
__ percent of the unitholders (unitholding) can pass a resolution to wind up a scheme.
38.
Details of debt and money market securities transacted (including inter scheme transfers) in its scheme’s portfolio shall be disclosed on daily basis with a time lag of 15 days.
39.
Investors subscribing to a scheme with a seggregated portfolio, will be allotted units only in the main portfolio based on its NAV.
40.
The trail commission is calculated on ______ balances and paid out _______________ .
41.
As per SEBI regulations, the minimum investment in equity and equity related instruments by value funds shall be —
42.
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.)
43.
Upfront trail commission for a first time investor is paid to the distributor for SIP investments —
44.
Mutual funds can buy and sell securities only on delivery basis. (from NISM)
45.
Debt securities that are to mature within a year are called ________.
46.
NRI investors investing through an NRO account, should register _______ with the mutual fund.
48.
For non-resident investors, redemption payment is made by the AMC in ____.
49.
Gold funds are _____ in nature.
50.
You invest in two funds. Fund A returned 5%; Fund B returned 3%. You have held Fund A for 6 months and Fund B for 4 months. What is the annualized return for Fund A and Fund B?
51.
An employee of the AMC cannot be a trustee of the fund.
52.
Multi Asset Allocation fund must invest in —
53.
Mutual fund distributors earn no commission when the investor chooses to invest in “direct” plans. State whether True or False.
54.
The returns on investment without factoring inflation is known as —
55.
A mutual fund investor receives ______ to denote his investments in the fund.
56.
A mutual fund scheme shall not invest more than __ percent of its NAV in the units of REIT and InvIT (subject to stipulations and conditions).
57.
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.
58.
KIM should be updated every —
59.
An infrastructure debt fund formed as a company is regulated by —
60.
At how many points did the BSE Sensex start?
61.
What is 'reverse charge mechanism' in GST?
62.
Assets of real estate funds should be valued by —
63.
Each mutual fund scheme must have a stated investment objective. State whether True or False. (from NISM)
66.
Which is the standard risk statement that mutual funds have to carry with their advertisements?
67.
PEG ratio of less than one indicates the equity shares of the company are _________.
68.
Let's say risk free return is 5 percent, and a scheme with Beta of 1.2 earned a return of 8 percent. Calculate its Treynor Ratio.
69.
Which of the following is an advantage of mutual funds? (from NISM)
70.
A mutual fund is treated as —
71.
Mutual funds can offer Instant Access Facility (IAF) in __________ funds.
72.
Quant funds use investment strategies based on —
73.
Mutual funds permit individual investors to register up to __ bank accounts and non-individual investors to register up to __ bank accounts.
74.
Minimum investment required in AA and below corporate bonds for credit risk funds is —
75.
If interest rates are expected to rise, the fund manager will invest in ________________.
76.
A scheme is considered to be suitable for an investor if its investment objective matches with the investor's needs.
77.
Mutual funds are constituted as ‘Trusts’ in India. Who are the beneficiaries of the trust? (from NISM)
78.
In case of partial redemption, units will be assumed to be redeemed on ______ basis.
79.
Real Estate Investment Trusts (REITs) invest in —
80.
ETFs have a single price per day at which the investor can either enter or exit the fund.
81.
Comparing two debt schemes – Scheme A has weighted average maturity of 1.5 years and Scheme B has weighted average maturity of 3.1 years. Which scheme's NAV will fluctuate more?
82.
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.
83.
Investors' return from a scheme and the scheme's returns are always the same.
84.
To undertake e-KYC, a SEBI-registered intermediate should enter into an agreement with any one ___ and get itself registered with UIDAI as a ____.
85.
Bonds with longer maturity would witness lower price fluctuations than bonds with shorter maturities.
86.
_______ the Sharpe Ratio, better the scheme is considered to be.
87.
A single SAI is relevant for all the schemes offered by a mutual fund.
88.
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?
89.
Silver held by a silver exchange traded fund shall be valued at the AM fixing price of London Bullion Market Association (LBMA) in US dollars per troy ounce for silver having a fineness of _____ parts per thousand.
90.
If an investor wants to change his distributor, the AMC will comply only after receiving a No Objection Certificate from the exisiting distributor.
91.
Which amongst the following categories of mutual funds have a fixed maturity date? (from NISM)
92.
For listing of mutual fund units, mutual funds need to comply with regulations by —
93.
Dividend warrants should be dispatched to investors within __days of declaration of the dividend.
94.
Sale of units of equity oriented mutual fund either to the mutual fund or on the stock exchange attracts STT @ _____.
95.
The difference between the yield on Gilt and the yield on a non-Government Debt security is called its _______.
96.
One disadvantage of mutual funds is —
97.
An investment advisor can earn both from advisory as well as distribution commission.
98.
The maximum amount an investor can invest in a mutual fund in cash/e-wallet per financial year is Rs _______.
100.
Investors can get customized portfolios through —
