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 real estate assets by real estate funds is —
2.
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.
3.
As per SEBI regulations, medium duration funds can invest in debt and money market securities with Macaulay duration of —
4.
The custodians are appointed by —
5.
The sponsor invests in the capital of the AMC.
6.
SEBI has mandated that the scheme performance should be compared with —
7.
As per SEBI regulations, the minimum investment in equity and equity related instruments by flexicap funds shall be —
8.
Unclaimed dividends and redemption amounts should be —
9.
Units that are in lock-in period can be pledged to avail a loan.
10.
Fund managers faced redemption pressure in ____-ended funds.
11.
KYC is required to comply with —
13.
Profits and losses of the scheme —
14.
SEBI has introduced silver ETFs.
15.
A Fund of Funds must have minimum investment in the underlying fund of —
16.
Entry load is not allowed in mutual funds.
17.
The total expense ratio of close ended and interval scheme(s) other than close-ended equity-oriented schemes shall not exceed ____ per cent of the daily net assets of the scheme.
18.
In case of a change of distributor code in a folio, no commission would be payable to any distributor, neither the old one nor the new one.
19.
The periods when an interval scheme becomes open-ended are called —
20.
With respect to mutual fund investing, minors are considered to be those below __ years of age.
21.
No exit load will be charged on bonus units and units allotted on reinvestment of dividend.
22.
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.
23.
Traded securities other than money market and debt securities forming part of a scheme's portfolio shall be valued at the _______.
24.
Midcap stocks have ben defined as ____ company in terms of full market capitalization.
25.
Mutual funds are governed by the Indian Trusts Act, 1882.
26.
Which among the following is not a statutory document? (from NISM)
27.
As per SEBI regulations, investments of an aggressive hybrid fund shall be —
28.
A Power of Attorney holder can make a nomination on behalf of the investor.
29.
What is the maximum number of joint holders a mutual fund investment can have?
30.
A mutual fund scheme shall not invest more than __ percent of its NAV in the units of REIT and InvIT issued by a single issuer.
31.
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?
32.
Strategic Asset Allocation is allocating an investor's funds based on —
33.
To avoid investors going through KYC repeatedly with each AMC, SEBI has permitted setting up of ____.
34.
A single SAI is relevant for all the schemes offered by a mutual fund.
35.
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)
36.
Dividend received from mutual funds is _______.
37.
______ Analysis throws up trends for the future direction of the market price of stocks.
38.
In this fund, investment in equity/debt is managed dynamically.
39.
A scheme is considered to be suitable for an investor if its investment objective matches with the investor's needs.
40.
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.)
41.
Mutual funds are not permitted to pay AUM based commissions upfront to distributors (subject to some exceptions).
42.
Transaction charges are not levied on switches and STPs.
43.
Mutual fund investments would be subject to levy of stamp duty @ _____ of the amount invested.
44.
PEG ratio of less than one indicates the equity shares of the company are _________.
45.
Only individuals are allowed to distribute mutual funds in India. State whether True or False. (from NISM)
46.
Upfront trail commission for a first time investor is paid to the distributor for SIP investments —
47.
Focused funds are less risky than sector funds.
48.
What is the tax applicable on the income earned by the mutual fund schemes? (from NISM)
49.
Mutual funds are permitted to use celebrities in their advertisements.
50.
ETFs have a single price per day at which the investor can either enter or exit the fund.
51.
An asset class is a grouping of investments that exhibit similar ______.
52.
Which is the Tier 1 benchmark that income/debt-oriented schemes should apply?
53.
In FMPs, the scheme's portfolio is matched with the —
54.
NAV for equity and balanced funds is to be calculated up to at least _ decimal places.
55.
Which of the following is an advantage of mutual funds? (from NISM)
56.
The unit capital in a close-ended fund —
57.
Investors subscribing to a scheme with a seggregated portfolio, will be allotted units only in the main portfolio based on its NAV.
58.
In the event of any issue with the AMC or mutual fund scheme, the investor can directly approach SEBI.
59.
The AMC needs to have a minimum net worth of _____
60.
Trail commission is calculated as a percentage of —
61.
For schemes other than index funds, the choice of benchmark is subjective.
62.
Which of the following statements is True? (from NISM)
63.
Commercial Papers are issued by ______ for period up to ____.
64.
Deadline for uploading all scheme NAVs (except Fund of Funds) on AMFI's website and that of mutual funds is ____.
65.
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.)
66.
Rajan read that XYZ Ltd had won a large contract. He was excited and invested in XYZ Ltd without doing any further research. Which behavioural bias does this refer to?
67.
____ ratio indicates how much equity investors are prepared to pay in relation to the company’s earnings.
68.
The factors affecting the performance of a scheme are — a. the movement of the specific market in which the money is invested, b. the performance of individual securities held, c. the skills of the investment management team. Which are these factors are in control of the fund manager?
69.
As per SEBI regulations, the minimum investment in equity and equity related instruments of midcap companies in case of midcap funds shall be —
70.
In case of dividends paid out, tax is to be deducted at __ percent on the dividend amount if it exceeds ______.
71.
Short term capital loss is to be set off against ____________.
72.
Auditors that audit the accounts of the AMC should be different from auditors auditing schemes' accounts.
73.
Ideally, an investor's portfolio should be divided into ______ and _______ portfolios.
74.
As per SEBI regulations, investments of a balanced hybrid fund shall be —
75.
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 —
76.
Each mutual fund scheme must have a stated investment objective. State whether True or False. (from NISM)
77.
Once an NRI becomes a Resident Indian, he needs to open a ___________.
78.
Mutual Fund Schemes (other than IPO of ELSS) to remain open for subscription for maximum of __ days.
79.
The book value represents the true value of the assets of the company.
80.
“Please read the scheme related documents carefully” – which documents does this line refer to? (from NISM)
81.
ELSS funds need to be listed on the stock exchange.
82.
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.
83.
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 _____.
84.
Upfronting of trail commission is allowed only in case of–
85.
April 1, 2023 onwards, deemed residual maturity of AT 1 and AT 2 bonds are as follows:
86.
Income tax at the rate of 10 percent (without indexation benefit) on long-term capital gains are charged on long term capital gains exceeding Rs.____ provided transfer of such units is subject to STT.
87.
No mutual fund (across all schemes) shall own more than ___ of perpetual bonds issued by a single issuer.
88.
The returns on investment without factoring inflation is known as —
89.
Statement of portfolio should be sent to all unitholders before the expiry of __ days from the close of each half year (i.e., 31st Mar and 30th Sep).
90.
For purchases and switch ins in equity oriented funds and debt funds (except liquid funds), the cut off time is ____.
91.
Which team of the AMC handles its finances?
92.
AMC can charge investment and advisory fees on a scheme's segregated portfolio.
93.
An investor's need to take risks arises from his need to–
94.
NRI investors investing through an NRE account, should register __________ with the mutual fund.
95.
As per SEBI regulations, the minimum investment in equity and equity related instruments by ELSS funds shall be —
96.
The formula for future value is —
97.
The day-to-day management of a scheme is handled by —
98.
Mutual fund schemes are benchmarked to the ______________.
99.
An investor can have one folio number across multiple schemes of the same mutual fund provided holding pattern is the same.
100.
The maximum period for imposing gating or restriction on redemption in mutual funds is ____.
