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.
As per SEBI regulations, the minimum investment in equity and equity related instruments in case of multi-cap funds shall be —
2.
The minimum investment and redemption limits specified by the mutual fund for the schemes will also apply to an STP.
3.
The sponsor should have profits after providing for depreciation, interest and tax in —
4.
The difference between a scheme’s actual return and its optimal return is its _______.
5.
The Beta of the market, by definition is __.
6.
Index funds are _____funds.
7.
Indicated are monthly returns of two schemes. Calculate the variance in returns.
8.
How many (maximum) bank accounts can a residentindividual investor register with a mutual fund folio? (from NISM)
9.
During a recession, real estate prices _____.
10.
What does AUM or Assets Under Management mean?
11.
Smart beta funds are similar to —
12.
Small cap stocks have ben defined as ____ company in terms of full market capitalization.
13.
Mutual funds are governed by the Indian Trusts Act, 1882.
14.
Capital protection funds take exposure to equity —
15.
An infrastructure debt fund formed as a company is regulated by —
16.
An SIP cannot be initiated during a New Fund Offer (NFO).
17.
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.
18.
A retirement solution-oriented scheme has a lock-in of —
19.
Lock-in period in case of ELSS funds is —
20.
As per SEBI regulations, small cap companies are defined as —
21.
Unclaimed dividends and redemption amounts should be —
22.
An infrastructure debt fund formed as a trust is regulated by —
23.
The base year of the BSE Sensex is–
24.
Open-ended debt funds have to maintain a minimum of __ per cent of their corpus in liquid assets. (subject to conditions and stipulations)
25.
If an investor needs funds and would like to withdraw from a scheme, he —
26.
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.
27.
As per SEBI regulations, the minimum investment in equity and equity related instruments of a large and midcap fund shall be —
28.
A high P/E ratio always indicates that a company's stock is expensive.
29.
ELSS funds need to be listed on the stock exchange.
30.
_______ the Sharpe Ratio, better the scheme is considered to be.
31.
An investor can change the distributor without specifying any reason.
32.
Schemes that seek liquidity invest in–
33.
A _________ account may be opened by a returning Indian to transfer balances from NRE /FCNR (B) accounts.
34.
An investor's need to take risks arises from his need to–
35.
To calculate distributable reserves, valuation gains are ______.
36.
An investor who has granted a POA to operate his mutual fund account, can no longer operate the account himself.
37.
You invested in a fund at NAV of Rs 12. NAV rose to Rs 15. What is your return on investment (simple return)?
38.
The application to SEBI for registration of a mutual fund is made by —
39.
Once a mutual fund folio is created as a jointly held account, a joint holder can be change at any time.
40.
The sponsor must have profits in the immediately preceding 3 out of 5 years at the time of making application to SEBI to set up a mutual fund. If the sponsor does not fulfil this criteria, it must have a networth of —
41.
At least __ percent of the ELSS funds should be invested in equity and equity-linked securities.
42.
In case of interval funds, the period between the close of a transaction period and the opening of the next transaction period is called the —
43.
The 'satellite' portfolio of an investor will be invested to take advantage of expected _____ market movements.
44.
In case of change in fundamental attributes of a scheme, the AMC should give existing investors at least __ days to exit the scheme.
45.
Generally, when interest rates rise, prices of existing fixed-income securities ___ and vice versa.
46.
Selling bonds in the secondary market could result in capital loss.
47.
______ Analysis throws up trends for the future direction of the market price of stocks.
48.
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.
49.
Demand draft issued against cash for Rs.50,000 or more will not be accepted as payment for investment in a mutual fund.
50.
Registrar and Transfer agents don't need to register with SEBI.
51.
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)
52.
AMC can charge investment and advisory fees on a scheme's segregated portfolio.
53.
The yields on debt securities tend to move up as the maturity _____.
54.
Funds where the fund manager has the flexibility to choose the investment portfolio, within the broad parameters of the investment objective of the scheme are called —
55.
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?
56.
Subodh is an employee in an IT company. Since he understands the IT sector, most of his portfolio is invested in IT stocks. Is this the correct strategy?
57.
An Index Fund/Exchange Traded Fund must have minimum investment in securities of a particular index of —
58.
No redemption or subscription is allowed in a segregated portfolio.
59.
A security with ____ maturity will fluctuate more as compared to a security with ____ maturity.
60.
ELSS funds have a lock-in period of ___ years.
61.
Calculate the weekly and annualized standard deviation.
62.
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.
63.
_______ are close-ended debt funds. (from NISM)
64.
Which amongst the following categories of mutual funds have a fixed maturity date? (from NISM)
65.
AMC shall enable listing of units of segregated portfolio on the recognized stock exchange within __ working days of creation of segregated portfolio.
66.
At how many points did the BSE Sensex start?
67.
Which entity regulates the pension market?
68.
An investment with a beta of 0.8 will move ____% when the market moves 10%.
69.
If an investor wants to change his distributor, the AMC will comply only after receiving a No Objection Certificate from the exisiting distributor.
70.
SEBI does not handle complaints issued against insurance companies.
71.
Mutual fund distributors earn no commission when the investor chooses to invest in “direct” plans. State whether True or False.
72.
Support levels, resistance levels, break outs, etc. are terms used in _________ Analysis.
73.
If the investor claims an unclaimed amount within 3 years, then payment is based on the —
74.
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.
75.
The face value of a unit is typically —
76.
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.
77.
AMCs can charge investment management and advisory fee on unclaimed amounts at a maximum per annum rate of —
78.
‘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)
79.
______takes into account all dividends generated from the basket of constituents that make up the index in addition to the capital gains. (from NISM)
80.
As per SEBI regulations, the minimum investment in equity and equity related instruments by ELSS funds shall be —
81.
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)
82.
Traded securities other than money market and debt securities forming part of a scheme's portfolio shall be valued at the _______.
83.
The P/E ratio of a company remains constant till the next quarterly earnings are declared.
84.
The monetary limit under the Instant Access Facility (IAF) per day per scheme per investor is _________.
85.
Changes not forming part of the key documents are published via —
86.
Only one scheme is permitted in case of Index funds and ETFs.
87.
_______ Analysis involves identifying securities with high potential for investment returns and where the risks are low.
88.
Treasury Bills are issued by ____.
89.
Certificates of Deposits issued by Banks are for ______.
90.
With effect from 1 April 2021, mutual funds have to rename their dividend transfer plans to ____________.
91.
For KYC, PAN card and photo work as —
92.
Responsibility for settlement of mutual fund transactions through the stock exchange platforms is with —
93.
What does NFO stand for?
94.
If the trustee is a company, it must have at least —
95.
Which amongst the following is a measure of risk-adjusted returns of mutual fund scheme? (from NISM)
96.
Mutual fund distributors can only earn upfront commission from the mutual funds. State whether True or False. (from NISM)
97.
PEG ratio of less than one indicates the equity shares of the company are _________.
98.
The formula to calculate EPS is _______.
99.
Portfolio concentration leads to _______ risk.
100.
Long term capital loss can be set off ____________ .
