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.
Investors exempt from providing PAN, have to quote the ________ issued by the KRA and submit a copy of the letter with the application form.
2.
Transaction charges are levied even if the investor does not invest through a distributor.
3.
No exit load will be charged on bonus units and units allotted on reinvestment of dividend.
4.
With effect from 1 April 2021, mutual funds have to rename their dividend plans. The dividend pay-out plan is renamed as ____________.
5.
While planning for an NFO, the Scheme Information Document needs to be approved by ___________.
6.
TDS applicable for non-resident investors is ___________.
7.
Registrar and Transfer agents don't need to register with SEBI.
8.
In capital protection funds --
9.
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).
10.
Fall in interest rates will result in--
11.
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?
12.
AMC can charge investment and advisory fees on a scheme's segregated portfolio.
13.
BSE's online platform for transacting in mutual funds is called --
14.
No mutual fund scheme shall own more than ____ of perpetual bonds by a single issuer.
15.
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.
16.
When yield expectations from a security rise, its market price _____.
17.
As per SEBI regulations, small cap companies are defined as --
18.
“A known devil is better than an unknown angel.” Which behavoural bias does this saying refer to?
19.
To reflect the payout of dividend, the NAV will be adjusted ____ record date.
20.
Investors subscribing to a scheme with a seggregated portfolio, will be allotted units only in the main portfolio based on its NAV.
21.
If interest rates are expected to rise, the fund manager will invest in ________________.
22.
Mutual funds are governed by the Indian Trusts Act, 1882.
23.
The relationship between interest rates and bond prices is --
24.
In case of STP, transfer of funds from the source scheme is equivalent to redemption. Exit loads and taxes will apply like any other redemption transactions.
25.
The AMC and schemes can have the same auditor.
26.
In case of interval funds, the maximum duration of the interval period is --
27.
The day-to-day management of a scheme is handled by --
28.
In case of Re-investment of Income Distribution cum capital withdrawal Option, dividend is reinvested at _____.
29.
Debt securities that are to mature within a year are called ________.
30.
Short term capital gains in case of equity-oriented funds are taxed at --
31.
Beta is based on the Capital Asset Pricing Model (CAPM).
32.
The trail commission is calculated on ______ balances and paid out _______________ .
33.
In case of a single holding, nomination is compulsory.
34.
Large-cap stocks have been defined as ____ company in terms of full market capitalization.
35.
You invested as follows: Investment amount: Rs 1,000; Investment period: 2 years; Investment value at the end of the investment period: Rs 4,000. What is the compounded return?
36.
Allocating investible funds across different equity securities is termed as asset allocation.
37.
A _________ account may be opened by a returning Indian to transfer balances from NRE /FCNR (B) accounts.
38.
The record of investors and their unit-holding is maintained by --
39.
For a sector fund or a mid-cap fund with limited investment options, a large fund size may be _________.
40.
Herd mentality implies--
41.
If the trustee is a company, it must have at least --
42.
This agreement between the trustees and the AMC sets out the responsibilities of the AMC.
43.
When a minor turns major, which form needs to be submitted to the mutual fund to change status?
44.
Redemptions in open-ended schemes result in lowering the scheme's AUM.
45.
The periods when an interval scheme becomes open-ended are called --
46.
Which entity regulates the banking system and money markets?
47.
If interest rates are expected to fall, a fund manager will invest in ____________.
48.
As per SEBI regulations, investments of an aggressive hybrid fund shall be --
49.
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?
50.
The unit capital in an open-ended fund --
51.
Investors can get customized portfolios through --
52.
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.
53.
A scheme is considered to be suitable for an investor if its investment objective matches with the investor's needs.
54.
An index fund tracking the S&P BSE Sensex would invest in stocks forming part of the index --
55.
Fund houses publish fact sheets on a voluntary basis.
56.
Portfolio concentration leads to _______ risk.
57.
SID and SAI are prepared in the format prescribed by --
58.
Entry load is not allowed in mutual funds.
59.
Sale of units of equity oriented mutual fund either to the mutual fund or on the stock exchange attracts STT @ _____.
60.
An investor can open a demat account with --
61.
SEBI has permitted celebrity endorsements at the industry level for the purpose of increasing awareness of Mutual Funds as a financial product category. (subject to conditions)
62.
The returns on investment without factoring inflation is known as --
63.
When the interest rates in the economy increase, the prices of existing bonds decrease; why?
64.
“Segregated portfolio” means a portfolio, comprising of _____ affected by a credit event, that has been segregated in a mutual fund scheme.
65.
Once an NRI becomes a Resident Indian, he needs to open a ___________.
66.
Which is the Tier 1 benchmark that income/debt-oriented schemes should apply?
67.
Listing of close-ended schemes is --
68.
Both regular plan and direct plan have the same total expense ratio (TER).
69.
How many (maximum) bank accounts can a residentindividual investor register with a mutual fund folio? (from NISM)
70.
Transaction costs in real estate are ______.
72.
An investor's need to take risks arises from his need to--
73.
The maximum period for imposing gating or restriction on redemption in mutual funds is ____.
74.
Mutual funds are permitted to use celebrities in their advertisements.
75.
What does 'credit risk' mean in case of bonds and debentures?
76.
Mutual funds are not permitted to pay AUM based commissions upfront to distributors (subject to some exceptions).
77.
Strategic Asset Allocation is allocating an investor's funds based on --
78.
Multiple schemes are permitted in case of fund of funds.
79.
If the investor claims an unclaimed amount within 3 years, then payment is based on the --
80.
The key difference between index funds and ETFs are --
81.
High standard deviation indicates ______ risks and volatility in returns.
82.
For schemes other than index funds, the choice of benchmark is subjective.
83.
If you hold a bond till maturity, there will be no capital gains.
84.
Open-ended debt funds have to maintain a minimum of __ per cent of their corpus in liquid assets. (subject to conditions and stipulations)
85.
Treynor Ratio comparisons should ideally be restricted to _____ schemes.
86.
Which ratio tells investors how much profit the company earned for each equity share that they own?
87.
For NRI investors ___ is the sole identification number for KYC compliance.
88.
In case of death of a mutual fund distributor, his nominee/legal heir need not be an ARN holder to claim and receive the commission.
89.
As per SEBI regulations, the minimum investment in equity and equity related instruments of small cap companies in case of small cap funds shall be --
90.
Whose KYC needs to be completed in case of an application by a minor? (from NISM)
91.
Mutual funds are allowed to charge differential exit loads based on the amount of investment. (from NISM)
92.
A high P/E ratio always indicates that a company's stock is expensive.
93.
Which is the standard risk statement that mutual funds have to carry with their advertisements?
94.
Costs incurred for managing the scheme are shared by all the Unit-holders --
95.
Tier 1 and Tier 2 bonds issued by banks and are perpetual in nature, are popularly called _______.
96.
Advertisements should contain point-to-point returns on a standard investment of Rs. ____.
97.
Which among the following is not a statutory document? (from NISM)
98.
SEBI needs to approve scheme related documents.
99.
In case of 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.
100.
In the event of any issue with the AMC or mutual fund scheme, the investor can directly approach SEBI.
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