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, minimum investment in equity & equity related instruments of large cap, midcap and small cap companies shall be —
2.
A mutual fund's trustees can be —
3.
Support levels, resistance levels, break outs, etc. are terms used in _________ Analysis.
4.
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?
5.
The unit capital of a scheme is calculated as —
6.
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?
7.
To calculate distributable reserves, valuation gains are ______.
8.
The formula to calculate Book value per share is ____________.
9.
If interest rates are expected to rise, the fund manager will invest in ________________.
10.
Investments by a scheme are done as per —
11.
ETFs can be purchased —
12.
Index funds are traded on exchanges.
13.
What does 'credit risk' mean in case of bonds and debentures?
14.
At least __ percent of the ELSS funds should be invested in equity and equity-linked securities.
16.
Multiple schemes are permitted in case of fund of funds.
17.
Ideally, an investor's portfolio should be divided into ______ and _______ portfolios.
18.
Focused funds are less risky than sector funds.
19.
Which agency issues the acknowledgement for having completed the KYC process for an investor?
20.
During a recession, real estate prices _____.
21.
In case of interval funds, during the transaction period —
22.
Treasury Bills are issued by ____.
23.
Mutual funds can offer —
24.
The principle of caveat emptor (let the buyer beware) applies to mutual fund investments.
25.
This agreement between the trustees and the AMC sets out the responsibilities of the AMC.
26.
An investor's ability to take risks implies–
27.
_______ the Treynor Ratio, better the scheme is considered to be.
28.
______takes into account all dividends generated from the basket of constituents that make up the index in addition to the capital gains. (from NISM)
29.
______ Analysis throws up trends for the future direction of the market price of stocks.
31.
The transparency levels in mutual funds are very low. State whether True or False. (from NISM)
32.
Selling bonds in the secondary market could result in capital loss.
33.
As per SEBI regulations, the sponsor should be carrying on business in financial services for —
34.
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.
35.
Midcap stocks have ben defined as ____ company in terms of full market capitalization.
36.
Under the SEBI guidelines, NFOs other than ELSS can remain open for a maximum of __ days.
37.
Under KYC norms, Ultimate Beneficial Owner (UBO) of a trust is one who owns or is entitled to more than __ percent of its benefits.
38.
Listing of close-ended schemes is —
39.
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?
40.
Whose KYC needs to be completed in case of an application by a minor? (from NISM)
41.
_________ the modified duration of a debt security, greater is its price volatility in response to changes in interest rates.
42.
An index fund tracking the S&P BSE Sensex would invest in stocks forming part of the index —
43.
Commercial Papers are issued by ______ for period up to ____.
44.
Investors have the right to specify up to how many nominees for their mutual fund investment folios. (from NISM)
45.
TDS applicable for non-resident investors is ___________.
46.
The application to SEBI for registration of a mutual fund is made by —
47.
ETFs have a single price per day at which the investor can either enter or exit the fund.
48.
Upfront trail commission for a first time investor is paid to the distributor for SIP investments —
49.
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 —
50.
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.)
51.
Investors can pledge their mutual fund units.
52.
In case of arbitrage funds, the minimum investment in equity and equity related instruments shall be —
53.
Short term capital loss is to be set off against ____________.
54.
Mutual fund distributors can only earn upfront commission from the mutual funds. State whether True or False. (from NISM)
55.
To get the current value of the investments, one has to —
56.
The returns on investment without factoring inflation is known as —
57.
Dividends paid out only include income earned by the scheme. There is no capital repayment component in it.
58.
PEG ratio of less than one indicates the equity shares of the company are _________.
59.
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?
60.
Minimum investment required in AA+ and above corporate bonds for corporate bond funds is —
61.
In FMPs, the scheme's portfolio is matched with the —
62.
As per SEBI regulations, the minimum investment in equity and equity related instruments by flexicap funds shall be —
63.
In case of SIP investments, transaction charges are levied only if the total investment commitment amounts to —
64.
What is 'Confirmation bias'?
65.
Investors require KYC to be complaint with which Act?
66.
Units of seggregated portfolios are required to be listed on the stock exchange.
67.
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 2 pm. What NAV will be applied?
68.
An asset class is a grouping of investments that exhibit similar ______.
69.
An investor can change the distributor without specifying any reason.
70.
Lock-in period in case of ELSS funds is —
71.
Investors cannot sue the trust but they can file suits against trustees
72.
The investor cannot specify the percentage distribution between the nominees.
73.
Let's assume all days except Tuesday, Saturday and Sunday are business days. Rakesh submits an application on Monday to redeem units of a liquid fund after cut off time. What NAV will be applied?
74.
What is a credit risk fund?
75.
Exit load charged is uniform for all investors.
76.
If there is a change in the fundamental attributes of a mutual fund scheme, then the unitholders are provided the option to exit at the prevailing NAV _____.
77.
Mutual fund distributors earn no commission when the investor chooses to invest in “direct” plans. State whether True or False.
78.
Employees of mutual fund distributors must obtain from AMFI —
79.
What is the maximum Total Expense Ratio chargeable in case of index funds? (from NISM)
80.
Only individuals are allowed to distribute mutual funds in India. State whether True or False. (from NISM)
81.
Open-ended debt funds have to maintain a minimum of __ per cent of their corpus in liquid assets. (subject to conditions and stipulations)
82.
Gold funds are _____ in nature.
83.
If an investor needs funds and would like to withdraw from a scheme, he —
84.
In case of partial redemption, units will be assumed to be redeemed on ______ basis.
85.
In case of mutual fund schemes, dividends can be paid only out of ___________. (from NISM)
86.
In case of interval funds, the maximum duration of the interval period is —
87.
As per SEBI regulations, investments of an aggressive hybrid fund shall be —
88.
Which are the two important documents for understanding about a mutual fund scheme?
90.
Under KYC norms, Ultimate Beneficial Owner (UBO) of a partnership firm is one who owns or is entitled to more than __ percent of its profits.
91.
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.
92.
Allocating investible funds across different equity securities is termed as asset allocation.
93.
KIM should be updated every —
94.
What minimum percentage of the mutual fund scheme corpus must be invested in equity and related instruments in the case of Equity Linked Savings Schemes (ELSS)? (from NISM)
95.
A _________ account may be opened by a returning Indian to transfer balances from NRE /FCNR (B) accounts.
96.
An investment with a beta of 0.8 will move ____% when the market moves 10%.
97.
The portfolio for all 3 scheme options – Income Distribution cum capital withdrawal, Re-investment of Income Distribution cum capital withdrawal Option and Growth option are the same.
98.
A Mutual Fund under all its schemes shall not own more than __ percent of a company’s paid-up capital bearing voting rights.
99.
The AMC and schemes can have the same auditor.
100.
As per SEBI regulations, investments of a balanced hybrid fund shall be —
