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.
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. 1,80,000 on February 9, 2018. How much capital gains tax would he pay?
2.
Lock-in period in case of ELSS funds is —
3.
Once an NRI becomes a Resident Indian, he needs to open a ___________.
4.
In derivatives, basis risk arises due to _________.
5.
Portfolio concentration leads to _______ risk.
6.
Beta is based on the Capital Asset Pricing Model (CAPM).
7.
Which is the most appropriate measure of evaluating how closely an index fund is tracking its benchmark? (from NISM)
8.
An Index Fund/Exchange Traded Fund must have minimum investment in securities of a particular index of —
9.
The principle of caveat emptor (let the buyer beware) applies to mutual fund investments.
10.
A Fund of Funds must have minimum investment in the underlying fund of —
11.
In case of interval funds, during the transaction period —
12.
Sale of units of equity oriented mutual fund either to the mutual fund or on the stock exchange attracts STT @ _____.
13.
Scheme returns published in MF advertisements are often factoring in exit load, if any.
14.
SAI needs to be updated within __ month(s) of every financial year.
15.
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)
16.
One can invest in real estate in–
17.
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 —
18.
The monetary limit under the Instant Access Facility (IAF) per day per scheme per investor is _________.
19.
Dividends paid out only include income earned by the scheme. There is no capital repayment component in it.
20.
Mutual funds pay tax on income earned.
21.
Online mutual fund platforms don't permit SIP, STP and SWP transactions.
22.
To reflect the payout of dividend, the NAV will be adjusted ____ record date.
23.
With respect to mutual fund investing, minors are considered to be those below __ years of age.
24.
In case of interval funds, the minimum duration of the transaction period is —
25.
Mutual funds structure customized portfolios for individual investors.
26.
An infrastructure debt fund formed as a company is regulated by —
27.
In case of investment in ELSS, in case of joint holding, the tax benefit would be available to ______.
28.
A mutual fund’s income is exempt from income tax.
29.
To get the current value of the investments, one has to —
30.
In case of valuation of convertible debentures and bonds, the non-convertible and convertible components shall be valued together.
31.
As per SEBI regulations, overnight funds can invest in overnight securities having maturity of —
32.
For mutual fund applicants, including guardians, whose country of birth/citizenship/nationality/tax residency is other than India, the application requires additional information under ______________.
33.
NAV is to be calculated up to __ decimal places in the case of index funds, liquid funds and other debt funds.
34.
In case of non-allotment in NFO, full amount is to be refunded within __ business day(s) from the date of closure of NFO. If refunded later than this, interest @ __ percent p.a. for delay period will be paid and charged to the AMC.
35.
Fund-of-funds investing in other equity mutual fund schemes are classified as ______ schemes.
36.
A high P/E ratio always indicates that a company's stock is expensive.
37.
The formula to calculate P/E ratio is ____________.
38.
Quant funds use investment strategies based on —
39.
It is better not to lose Rs. 5,000 than to gain Rs. 5,000.' Which behavioural bias does this refer to?
40.
No mutual fund under all its schemes shall own more than __ percent of units issued by a single issuer of REIT and InvIT.
41.
Once a benchmark index is selected, a fund cannot change it.
42.
KYC is required to comply with —
43.
The AMC needs to have a minimum net worth of _____
44.
In a multi asset allocation fund, foreign securities are treated as a separate asset class.
45.
If the new inflows into a scheme from beyond top 30 cities are at least (a) 30 percent of gross new inflows in the scheme or (b) 15 percent of the average assets under management (year to date) of the scheme, whichever is higher, funds can charge the additional expense of up to ____ percent of the daily net assets of the scheme.
46.
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.
47.
The investor cannot specify the percentage distribution between the nominees.
48.
Short term capital gains in case of equity-oriented funds are taxed at —
49.
The relationship between interest rates and bond prices is —
50.
In case of a single holding, nomination is compulsory.
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.
The sponsor has to appoint at least —
53.
Fund houses publish fact sheets on a voluntary basis.
54.
A debt fund manager will _____ the duration of the portfolio by moving into long term maturities if interest rates are expected to fall.
55.
Where the scheme has been in existence for less than six months past performance shall not be provided in the advertisement.
56.
__ percent of the unitholders (unitholding) can pass a resolution to wind up a scheme.
57.
In case of other than open-ended equity-oriented schemes other than as specified for fund-of-fund and index fund schemes, the total expense ratio of the scheme on the first Rs. 500 crores of the daily net assets is ____ percent.
58.
Tactical asset allocation is typically suitable for–
59.
Minimum investment required in debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds for Banking and PSU funds is —
60.
Beta is relevant for both debt and equity schemes.
61.
As per SEBI regulations, the sponsor should be carrying on business in financial services for —
62.
The formula to calculate Book value per share is ____________.
63.
While transacting through MF utilities, the investor —
64.
When yield expectations from a security rise, its market price _____.
65.
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)
66.
PEG ratio of less than one indicates the equity shares of the company are _________.
67.
A scheme shall not invest more than __ percent of its NAV in debt instruments (money market and non-money market instruments) issued by a single issuer which are rated not below investment grade. (subject to certain stipulated exceptions)
68.
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 _____.
69.
As per SEBI regulations, minimum investment in infrastructure-based securities by infrastructure funds should be —
70.
For purchases and switch ins in liquid funds the cut off time is ____.
71.
Redemptions in open-ended schemes result in lowering the scheme's AUM.
72.
Investment by a fund in the listed securities of the group companies of the sponsor will be limited to __ percent of the net assets.
73.
Risk-o-meter shall have the ___ levels of risk for mutual fund schemes.
74.
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
75.
There is no credit risk associated with gilts.
76.
This agreement between the trustees and the AMC sets out the responsibilities of the AMC.
77.
At least ______of the trustees need to be independent trustees.
78.
Tier 1 and Tier 2 bonds issued by banks and are perpetual in nature, are popularly called _______.
79.
The formula to calculate dividend yield is ___________.
80.
Computation of 'Alpha' returns should ideally be restricted to _____ schemes.
81.
Passive funds track —
82.
As per SEBI regulations, large cap companies are defined as —
83.
Parking of funds in Short-term deposits with all scheduled commercial banks shall be limited to __ percent of the net assets of the scheme. (subject to conditions and stipulations)
84.
Transaction charges are levied even if the investor does not invest through a distributor.
85.
Fund factsheet is a statutory requirement.
86.
If there is a change in the status of the investor under FATCA after the information is first provided, then the same has to be reported to the mutual fund within __ days.
87.
With effect from 1 April 2021, mutual funds have to rename their dividend transfer plans to ____________.
88.
Treynor Ratio comparisons should ideally be restricted to _____ schemes.
89.
Redemption/re-purchase cheques should be dispatched to investors within __ working days from the date of receipt of transaction request.
90.
When a security is not traded on any stock exchange for a period of ______ days prior to the valuation date, the scrip must be treated as a ‘non-traded’ scrip.
91.
Which of the following is a measure of fluctuation in periodic returns in an equity mutual fund scheme? (from NISM)
92.
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.
93.
Schemes that seek liquidity invest in–
94.
A change or cancellation of nomination has to be made only by the first named unitholder.
95.
Gating or restriction on redemption in mutual funds can be imposed only during ________.
96.
Employees of mutual fund distributors must obtain from AMFI —
97.
Pending investor complaints cannot be a ground for SEBI to refuse permission to the AMC to launch new schemes.
98.
To undertake e-KYC, a SEBI-registered intermediate should enter into an agreement with any one ___ and get itself registered with UIDAI as a ____.
99.
As per SEBI regulations, mid cap companies are defined as —
100.
In case of receiving bonus units, capital loss on sale of original units will not be allowed if the original units were bought within a period of _ months prior to the record date for the bonus issue and sold off within a period of _ months after the record date.
