Mock Test 2 - TheMFCentral

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NISM V-A Mock Test 2

NISM V-A (Mutual Fund Distributor Module) Exam | Mock Test 2

1 / 50

A value fund is expected to have ________ exposure to front line stocks

Half of it's

High

Entire

Low

2 / 50

Credit rating enables an investors to judge the

Duration of loan

Extent of securities against the borrowing

Interest rate risk

Risk of default by borrower

3 / 50

An investor is doing a liquid investment, fund is available and time is 12.30. NAV would be applicable for the _______

Closing NAV of Day immediately preceding the date of application

Next working day

Closing NAV of Day immediately preceding next business day

Same day

4 / 50

Which expenses can be changed by the AMC to a mutual fund scheme?

Expenses which are incurred by the AMC

Expenses which are incurred by investors in buying the fund

Expenses which are incurred to launch the fund

Expenses which are incurred to manage the fund

5 / 50

Mutual funds in India are not permitted to invest in

Real estate

Gold

Art

Secularized deb

6 / 50

The investment in MF portfolio are valued at

Market value of portfolio

Face value of portfolio

cost of investment

Book value of portfolio

7 / 50

Exit loads are generally lower for large investors

False

True

8 / 50

Balance funds are for

Moderate conservative

Aggressive investors

Highly conservative

highly aggressive investor

9 / 50

Time stamping arrangement is must at...

Bank distributor's branch

AMC offices

Offices declared as point of acceptance.

Offices of distributors

10 / 50

Capital gain or loss from mutual fund investment are classified as a short
term investment are if sold within

9 months

13 months

6 months

12 months

11 / 50

In case of liquid fund, investment less than 3 months old. which return would be calculated?

Total return

CAGR

Simple annualized

Absolute return

12 / 50

Returns in international fund is dependent on

Both of the above

Asset class performance

None of the above

Exchange rates

13 / 50

Investor invest 50 lakh in GILT at 3.30 pm with a local cheque. he gets NAV of

Same day

Next preceding day

Next business day

Closing NAV of day fund are available

14 / 50

If a third party payment is to be made for subscribing to a mutual fund scheme, then which of the following is/are essentially required?

The minimum investment has to be Rs. 50,000

The third party should also have a folio with the mutual fund

None of these

The third party has to provide PAN details and als comply with KYC norms

15 / 50

In case of equity fund, if fund has higher allocation to cash in bullish market the performance is likely to..

Better than benchmark return

cant say

Be worse than benchmark return

Be comparable to that of benchmark index

16 / 50

Probabilities of losing money in equity is negligible if investment horizon is for at least

6 months

1 years

3 years

5 years

17 / 50

Which of the following is true

STT is payable when investor does redemption from equity MF

STT is payable when investor sale debt MF

STT is payable when investor purchase equity MF

STT is payable when investor purchase debt MF

18 / 50

Unaudited accounts of the scheme must be published

Once every six month in one national & Regional news paper

Only on AMC's website

through monthly fact sheet

Only at AMFI website

19 / 50

Time stamping needs to start with serial no 1 on every business day.

FALSE

TRUE

20 / 50

While evaluating return for an index fund across a peer group, which of the following is more important?

R-squared

BETA Coefficient

Past performance

Tracking error

21 / 50

CRISIL's indicator for highest safety in a debenture is

AAA

P1+

Good

High

22 / 50

SIP is a good investment strategy because..

Investor gets units at a discount to NAV

No load investment done

It offers benefits of rupee cost averaging

It helps regular income for investor

23 / 50

A Trader believes that he can always outperform the market. This is an example of __________.

Herd Mentality bias

Overconfidence / Optimism bias

Anchoring bias

Recency bias

24 / 50

Fundamental analysts are called "Chartists"

TRUE

FALSE

25 / 50

SEBI has put a stop on charging ____________ to the scheme.

Entry Load

CDSC

Exit load

Recurring Expenses

26 / 50

Performance of fund must always be measured relative to the

Index

Investment objective

Asset Class

Benchmark

27 / 50

The lower risk among equity fund is

Dividend yield fund

Growth fund

Value Fund

Index Fund

28 / 50

If absolute return was 2.4% over 50 days, annualized return would be____________

0.024

1.2

0.175

0.05

29 / 50

An investor invested Rs.100000/- in a 370 days FMP and got Rs. 107750/-, what is capital gain in this case?

750

10% Plus surcharge or 20% after index benefit

Insufficient details

7750

30 / 50

NRI can not make repartition investment in MF using demand draft.

FALSE

TRUE

31 / 50

Which of the following is not government saving scheme?

RBI Bonds

Infrastructure Bonds

KVP

POST

32 / 50

A mutual fund distributor is paid commission for..

As long as investor held the investment

First 3 years of Investment done by investor

First 5 years of Investment done by investor

First 10 years of investment done by investor

33 / 50

STT is charged on

Derivatives trading

Equity MF

Equity share trading

All of the above

34 / 50

Which of the following document is not require to be submitted by charitable trust to invest in MF?

certificate of registration

List of authorized signatories

Trust deed

Board resolution and Memorandum and article of association

35 / 50

An investor looking for capital appreciation, having a high risk tolerance
and long tem horizon must invest in

Gold

Equity

Bonds

Bank FD

36 / 50

An investor seeking capital appreciation, having high risk tolerance and
long term horizon must invest in

PPF

Real-Estate

Bank FD

Bonds

37 / 50

A company's PE ratio may be low because it is unlikely to replicate it's past performance

TRUE

FALSE

38 / 50

Difference between scheme's actual return and optimal return for it's risk is

Alpha

Sharpe

Treynor

Spread

39 / 50

An investor plans to invest Rs.12000 in a scheme whose NAV is 12 and FV is 10, how many units is he likely to be obtained.

cant say

1200

1000

<1000

40 / 50

The guideline issued by AMFI for intermediaries are known as...

AGNI

ACE

none of above

AMFI

41 / 50

Index funds are safer because their NAV does not go down

TRUE

FALSE

42 / 50

Offering for repurchase, constant amounts worth of units at regular interval basis is called

Value investment

STP

SIP

SWP

43 / 50

Mr. Mahesh invests Rs. 2,00,000 in a mutual fund with a face value of Rs. 10 and NAV of Rs. 50. How many units will be allotted to him?

Will be lower than 4000 units due to entry load

4000 units

Will be lower than 20000 units due to entry load

20000 units

44 / 50

Which of the followings are least comparable

ETF and Index fund

GILT and Sector fund

Liquid and Current account

Liquid and Savings accoun

45 / 50

Which of the following is not required for KYC norms.

Proof of Identity

Proof of address

Proof of investment

All of the above

46 / 50

The information on minimum investment amount, investor's service centers, and how to make purchase is provided in.

None of the above

Application form

Nomination Form

KIM

47 / 50

If one wants to know the General Risk Factors, than which documents should he read?

Fund Factsheet

Key Information Memorandum (KIM)

Documents filed with SEBI

Scheme Information Documents (SID)

48 / 50

Liquid funds can not charge management fees of funds parked in a short term bank deposits

TRUE

FALSE

49 / 50

Which of the followings is physical asset?

Real estate fund

Gold future

Securised deb

Real estate

50 / 50

Identify the True statement/s:

A) An Addendum must accompany the KIM B) Addendum is considered to be a part of the Scheme related documents

Only A is true

Only B is True

Both A and B are True

None of them are True

Your score is

This Mock Test will help you familiarize yourself with the exam format, assess your knowledge, and identify areas that may need further study.

Remember that while mock tests can benefit practice, it’s important to understand the concepts and principles behind each question thoroughly.

Good luck with your preparation for the NISM Series V-A exam!

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