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

Time stamping arrangement is must at...

Offices declared as point of acceptance.

Offices of distributors

AMC offices

Bank distributor's branch

2 / 50

Exit loads are generally lower for large investors

False

True

3 / 50

The investment in MF portfolio are valued at

cost of investment

Market value of portfolio

Face value of portfolio

Book value of portfolio

4 / 50

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

6 months

13 months

12 months

9 months

5 / 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 debt MF

STT is payable when investor purchase equity MF

6 / 50

Returns in international fund is dependent on

Exchange rates

Both of the above

None of the above

Asset class performance

7 / 50

A mutual fund distributor is paid commission for..

First 5 years of Investment done by investor

First 10 years of investment done by investor

As long as investor held the investment

First 3 years of Investment done by investor

8 / 50

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

KIM

None of the above

Nomination Form

Application form

9 / 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

Same day

Closing NAV of Day immediately preceding next business day

10 / 50

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

Treynor

Alpha

Spread

Sharpe

11 / 50

Fundamental analysts are called "Chartists"

TRUE

FALSE

12 / 50

Which of the followings are least comparable

ETF and Index fund

GILT and Sector fund

Liquid and Current account

Liquid and Savings accoun

13 / 50

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

SWP

Value investment

SIP

STP

14 / 50

Index funds are safer because their NAV does not go down

FALSE

TRUE

15 / 50

Performance of fund must always be measured relative to the

Benchmark

Asset Class

Investment objective

Index

16 / 50

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

Closing NAV of day fund are available

Same day

Next preceding day

Next business day

17 / 50

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

Be comparable to that of benchmark index

Be worse than benchmark return

Better than benchmark return

cant say

18 / 50

Balance funds are for

highly aggressive investor

Aggressive investors

Moderate conservative

Highly conservative

19 / 50

CRISIL's indicator for highest safety in a debenture is

Good

AAA

High

P1+

20 / 50

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

ACE

none of above

AMFI

AGNI

21 / 50

Unaudited accounts of the scheme must be published

Only at AMFI website

Once every six month in one national & Regional news paper

Only on AMC's website

through monthly fact sheet

22 / 50

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

Fund Factsheet

Scheme Information Documents (SID)

Documents filed with SEBI

Key Information Memorandum (KIM)

23 / 50

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

FALSE

TRUE

24 / 50

The lower risk among equity fund is

Dividend yield fund

Value Fund

Index Fund

Growth fund

25 / 50

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

Entire

High

Half of it's

Low

26 / 50

Credit rating enables an investors to judge the

Risk of default by borrower

Extent of securities against the borrowing

Duration of loan

Interest rate risk

27 / 50

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

1 years

3 years

6 months

5 years

28 / 50

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

Gold

Equity

Bank FD

Bonds

29 / 50

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

FALSE

TRUE

30 / 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

31 / 50

STT is charged on

All of the above

Equity MF

Equity share trading

Derivatives trading

32 / 50

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

List of authorized signatories

certificate of registration

Trust deed

Board resolution and Memorandum and article of association

33 / 50

Mutual funds in India are not permitted to invest in

Art

Gold

Secularized deb

Real estate

34 / 50

Which of the following is not required for KYC norms.

All of the above

Proof of investment

Proof of Identity

Proof of address

35 / 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

None of them are True

Both A and B are True

Only A is true

Only B is True

36 / 50

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

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

Expenses which are incurred by the AMC

37 / 50

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

PPF

Bank FD

Bonds

Real-Estate

38 / 50

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

TRUE

FALSE

39 / 50

SIP is a good investment strategy because..

It helps regular income for investor

It offers benefits of rupee cost averaging

Investor gets units at a discount to NAV

No load investment done

40 / 50

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

TRUE

FALSE

41 / 50

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

750

Insufficient details

10% Plus surcharge or 20% after index benefit

7750

42 / 50

Which of the following is not government saving scheme?

KVP

Infrastructure Bonds

POST

RBI Bonds

43 / 50

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

Tracking error

R-squared

BETA Coefficient

Past performance

44 / 50

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

0.175

0.05

1.2

0.024

45 / 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.

1000

cant say

1200

<1000

46 / 50

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

Recurring Expenses

Entry Load

Exit load

CDSC

47 / 50

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

Absolute return

CAGR

Simple annualized

Total return

48 / 50

Which of the followings is physical asset?

Securised deb

Real estate

Gold future

Real estate fund

49 / 50

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

Herd Mentality bias

Recency bias

Anchoring bias

Overconfidence / Optimism bias

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

None of these

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

The minimum investment has to be Rs. 50,000

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.

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

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