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.
High standard deviation indicates ______ risks and volatility in returns.
2.
In case of partial redemption, units will be assumed to be redeemed on ______ basis.
3.
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)
4.
Mark-to-Market valuation of a scheme is done on a —
5.
All investors investing up to Rs 50,000 per year per mutual fund don't need to provide PAN.
6.
In the event of any issue with the AMC or mutual fund scheme, the investor can directly approach SEBI.
7.
Which key document is mandatorily circulated along with the application form?
8.
KIM should be updated every —
9.
Only one scheme is permitted in case of Index funds and ETFs.
10.
Which is the Tier 1 benchmark that income/debt-oriented schemes should apply?
11.
If the trustee is a company, it must have at least —
12.
A minor’s account is frozen for operation by the guardian on the day the minor attains the age of majority and no further customer-initiated transactions shall be permitted till the status is changed from minor to major.
13.
Short term capital gains in case of non-equity-oriented funds are taxed at —
14.
Scheme returns are calculated using ______ if holding period is over one year, and _____ returns for less than one year.
15.
A mutual fund's trustees can be —
16.
A floater fund can invest in fixed rate instruments converted to floating rate exposures using swaps/derivatives.
17.
Small cap stocks have ben defined as ____ company in terms of full market capitalization.
18.
The NAV of a scheme is Rs. 11 per unit. It charges exit load of 1 percent. Hence, the re-purchase price would be _____.
19.
The custodians are appointed by —
20.
Commercial Papers are issued by ______ for period up to ____.
21.
In case of undertaking SIP for a minor, SIP will be registered only till the date of the minor attaining majority.
22.
Gating or restriction on redemption in mutual funds can be imposed only during ________.
23.
Segregated portfolio shall mean a portfolio, comprising of ____________ affected by a credit event, that has been segregated in a mutual fund scheme.
24.
No mutual fund (across all schemes) shall own more than ___ of perpetual bonds issued by a single issuer.
25.
A mutual fund is treated as —
26.
Half Yearly Disclosures (unaudited financial results) should be uploaded on the mutual fund website within __ month(s) from the close of each half year (i.e., 31st Mar and 30th Sep) [applicable for schemes other than debt and money market schemes].
27.
Changes not forming part of the key documents are published via —
28.
The difference between an index fund’s return and the market return is the _____.
29.
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?
30.
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 —
31.
SEBI needs to approve scheme related documents.
32.
Which of the following scheme categories would be considered the least risky in terms of credit risk? (from NISM)
33.
Treynor Ratio comparisons should ideally be restricted to _____ schemes.
34.
Which funds are expected to perform better?
36.
As per SEBI regulations, liquid funds can invest in debt and money market securities having maturity of —
37.
Which of the following regulates mutual funds in India? (from NISM)
38.
The returns on investment without factoring inflation is known as —
39.
If the investor claims an unclaimed amount within 3 years, then payment is based on the —
40.
Scheme returns published in MF advertisements are often factoring in exit load, if any.
41.
Mutual funds permit individual investors to register up to __ bank accounts and non-individual investors to register up to __ bank accounts.
42.
An infrastructure debt fund formed as a company is regulated by —
43.
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?
44.
ELSS funds have a lock-in period of ___ years.
45.
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.
46.
Allocating investible funds across different equity securities is termed as asset allocation.
47.
Long term investment decisions are taken using _______ Analysis.
48.
Which team of the AMC handles its finances?
49.
What is the one thing that a POA holder cannot do in an investor's mutual fund account.
50.
SIP investing is different from rupee cost averaging.
51.
One disadvantage of mutual funds is —
52.
Investors subscribing to a scheme with a seggregated portfolio, will be allotted units only in the main portfolio based on its NAV.
53.
If an investor initiates change of distributor code because the existing distributor has voluntarily stopped business, the new distributor will not get the trail commission.
54.
In case of interval funds, the minimum duration of the transaction period is —
55.
An investor can open a demat account with —
56.
Lock-in period in case of ELSS funds is —
57.
Multi Asset Allocation fund must invest in —
58.
Higher the scheme's expenses —
59.
The maximum period for imposing gating or restriction on redemption in mutual funds is ____.
60.
Which of the following type of analysis tracks the price and volume data related to trading in the security? (from NISM)
61.
Schemes in the process of winding up are required to be listed on the stock exchange.
62.
For a sector fund or a mid-cap fund with limited investment options, a large fund size may be _________.
63.
Dynamic asset allocation funds are categorized as _______ funds.
64.
Which is the most appropriate measure of evaluating how closely an index fund is tracking its benchmark? (from NISM)
65.
Support levels, resistance levels, break outs, etc. are terms used in _________ Analysis.
66.
If the scheme has been in existence for more than six months but less than one year, in the advertisement, __________________from the last day of month-end preceding the date of advertisement shall be provided.
67.
When the mutual fund scheme has been in existence for more than three years, performance advertisement of mutual fund schemes shall be provided in terms of CAGR for the past —
68.
A scheme is considered to be suitable for an investor if its investment objective matches with the investor's needs.
69.
The difference between a scheme’s actual return and its optimal return is its _______.
70.
An Index Fund/Exchange Traded Fund must have minimum investment in securities of a particular index of —
71.
An investor invested in scheme A when the scheme’s NAV was Rs. 120 per unit. The investor redeemed the investments at the NAV of Rs. 135. Calculate the simple return.
72.
The record of investors and their unit-holding is maintained by —
73.
Which funds have higher expenses?
74.
All arbitrage funds (including paired arbitrage, alpha arbitrage, merger arbitrage, etc.) carry no risk.
75.
Which mutual fund trading platform has the mutual fund industry set up under AMFI?
76.
SID and SAI are prepared in the format prescribed by —
77.
During a recession, real estate prices _____.
78.
Responsibility for settlement of mutual fund transactions through the stock exchange platforms is with —
79.
To help investors select suitable schemes among the large number of schemes available, SEBI has introduced —
80.
Investment by a fund in the listed securities of the group companies of the sponsor will be limited to __ percent of the net assets.
81.
When the interest rates in the economy increase, the prices of existing bonds decrease; why?
82.
In a bottom-up investment approach, the portfolio manager evaluates the ______first and finally the ______.
83.
In case of change in fundamental attributes of a scheme, the AMC should give existing investors at least __ days to exit the scheme.
84.
Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are not mutual fund schemes.
85.
Which of the following cannot be considered for the purpose of selecting a scheme’s benchmark? (from NISM)
86.
Who calculates the NAV of the schemes?
87.
Units of seggregated portfolios are required to be listed on the stock exchange.
88.
When a scheme advertises pay out of dividends, all advertisements shall disclose —
89.
Who decides the quantum of dividend and the record date of a scheme?
90.
The record date for dividend shall be ____ calendar day(s) from the issue of the notice by the AMC. (this is not applicable for liquid schemes and debt schemes with dividend distribution frequency ranging from daily to monthly.)
91.
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 —
92.
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.
93.
Unclaimed dividends and redemption amounts should be —
94.
While planning for an NFO, the Scheme Information Document needs to be approved by ___________.
95.
The difference between the yield on Gilt and the yield on a non-Government Debt security is called its _______.
96.
As per SEBI regulations, mid cap companies are defined as —
97.
Traded securities other than money market and debt securities forming part of a scheme's portfolio shall be valued at the _______.
98.
A Power of Attorney holder can make a nomination on behalf of the investor.
99.
Quant funds use investment strategies based on —
100.
Calculate the NAV of the scheme with the following information: Value of stocks: Rs. 230 crores; Value of money market instruments: Rs. 5 crores Dividend accrued but not received: Rs. 2.39 crore; Amount payable on purchase of shares: Rs. 7.5 crore; Amount receivable on sale of shares: Rs. 2.34 crore; Fees payable: Rs. 0.41 crore; No. of outstanding units: 2.65 crore
