Mock Test 10 - TheMFCentral

NISM V-A Mock Test 10

NISM V-A (Mutual Fund Distributor Module) Exam | Mock Test 10

1 / 50

Business model, experience and proficiency in the business is a compulsory criteria for empanelment and review of which of the following category of mutual fund distributors?

Institutional distributors who have points of presence in more than 10 locations

Individual distributors who have points of presence in more than 10 locations

Distributors who have received commission of over Rs. 1 Crore p.a. across industry

All of the above

2 / 50

Stamp duty is required to be paid for which of these mutual fund transactions?

A. New purchases B. Systematic Investment Plan (SIP) C. Dividend reinvestment D. Systematic Transfer Plan (STP

A,B and D

Only A

B and D

A,B,C and D

3 / 50

What should an investor see to evaluate the Consistency of Mutual Fund scheme performance ?

Point to Point

Standard Deviation

Discrete annual returns

Beta

4 / 50

In which categories of stocks do Multi Cap equity funds invest in ?

Mostly large cap stocks only of various companies

Mostly mid cap stocks only of various companies

Mostly small cap stocks only of various companies

A mix of large, mid and small cap stocks

5 / 50

Which type of transactions are allowed on a stock exchange platform for mutual fund
trading? A - Redemptions B - Fresh subscription C - Additional purchases

Only B

A, B and C

A and B

B and C

6 / 50

Where are the 'Standard Risk Factors' of a Mutual Fund scheme disclosed?

Fund Fact Sheet

Scheme Information Document (SID)

Statement of Additional Information (SAI)

Addendum

7 / 50

What is the role of the custodian of a mutual fund?

To issue statement of funds holding to the investors

To execute the buy and sell orders in the stock market

To keep the safe custody of the securities of the mutual fund scheme

To issue account statements to the Mutual Fund unit holders

8 / 50

If a person has to trade in units of a closed-ended mutual fund on the stock exchange platform then the units have to be held in _______ .

Dematerialized form

Physical form

9 / 50

Floating interest rate is _________ .

A rate which is payable only on maturity

Base Rate + Spread

Prime rate of lending

the yield on spread

10 / 50

A mutual fund has to report which of the following information of an investor who comes under the Foreign Account Tax Compliance Act (FATCA)?

The entire investment value of all the folios of the investor

The identity of the account holders

The identity of the beneficial holders

All of the above

11 / 50

In an Arbitrage fund, the minimum investment in equity and equity related instruments shall be ______ of total assets.

50 percent

55 percent

60 percent

65 percent

12 / 50

An mutual fund application form with multiple holders has to be signed by ______ .

Any of the holders

All the holders

Only the first two holders

Only the first holder

13 / 50

Which of these is a key advantage of Exchange Traded Funds (ETFs) ?

ETFs generally give higher returns than normal funds

ETFs offer tax benefits

Investors can control the money they have invested as to where the ETF can invest

Investors can buy or sell ETFs on a stock exchange at prices which are close to current valuations

14 / 50

With respect to the procedure for getting empanelled as a mutual fund distributor with AMC, the applicant needs to sign a declaration for _______ .

Guarantee of adding a minimum of 5 investors every month

declaring the rebates given back to the investors

ensuring that all employees who are selling mutual funds will have more than on ARN code

Commitment to abide by statutory codes, guidelines and circulars

15 / 50

Return from a fund is 11.5% and the risk free rate is 7%, the Standard deviation is 3 & Beta is 1.9. What will be the denominator for calculating the Sharpe ratio?

4.5

1.9

11.5

16 / 50

When is a Consolidated Account Statement (CAS) dispatched to the investor?

When ever the investor asks for a CAS

bi-monthly for dormant investors

Every month, before the 10th working day of the following month

When ever there is a transaction in the folio

17 / 50

Identify the duty of a SPONSOR of a mutual fund -

Guards the interest of the mutual fund unit holders

Contributes to the capital of the Asset Management Company

Looks after the day to day administration of the mutual fund

Regularly report to SEBI on the working of the fund

18 / 50

Which strategy can be used to ensure that a mutual fund scheme is suitable to the investors need and situation?

Indexation

Dividend Stripping

Asset Allocation

Tax harvesting

19 / 50

Which of these documents have to be updated once in a year?

Mandatory portfolio disclosures

Scheme Information Document

Fund factsheet

All of the above

20 / 50

The average net assets of a fund were Rs 800 crore and the investment transactions of the fund were Rs 1600 crore. Calculate the Portfolio Turnover Ratio.

10 times

0.5 times

2 times

20 times

21 / 50

Which amongst the following bias can lead to concentrated portfolio?

Familiarity Bias

Herd Mentality

Overconfidence Bias

Recency Bias

22 / 50

The NAV applicable for purchase in a gilt fund of Rs. 50 Lakhs if the cheque is received after 2 pm will be _____ .

Same day NAV if received before cut off time.

Closing NAV of day immediately preceding the date of application

Closing NAV of the next business day

NAV of the business day on which the funds are available for utilisation

23 / 50

Equity Linked Savings Schemes (ELSS) are eligible for deduction under Section 80C of the Income Tax Act. However, such schemes have a lock-in period of _______ from the date of investment.

3 years from the date of allotment of each individual unit

3 years from the date of original investment even in case of subsequent purchases

5 years from the date of allotment of each individual unit

If tax exemption is NOT availed, there will not be any lock-in period

24 / 50

There are no SEBI regulations regarding the minimum or maximum commission that distributors can earn - State True or False ?

TRUE

FALSE

25 / 50

State True or False - Long term capital loss can only be set off against long term capital gain.

TRUE

FALSE

26 / 50

The main purpose why SEBI has issued norms for investments by mutual fund schemes is to _________.

get better returns by mutual fund schemes

improve the credit ratings of the mutual fund schemes

protect the interests of the mutual fund investors

protect the interests of the mutual fund industry

27 / 50

The loss booked from a equity investment of 18 months can be set off against ________ .

Long term capital loss only

Long term capital gain only

Short term capital gain only

Short term capital gain or long term capital gain

28 / 50

Which document will an investor look at if he has to know the fundamental attributes of a mutual fund scheme?

Key Information Memorandum (KIM)

Addendum

Scheme Information Document (SID)

Statement of Additional Information (SAI)

29 / 50

Mutual funds in India are governed by SEBI (Mutual Fund) Regulations, 1996 - True or False

True

False

30 / 50

Which of these is an important criteria for choosing either Growth option or Dividend option in the same mutual fund scheme?

Returns on the scheme

Assets Managed by the scheme

Tax status of the investor

Fund Manager

31 / 50

In case of a floater Fund, what is the Required Minimum Investment in floating rate investment of total assets invested?

65%

45%

55%

75%

32 / 50

KIM has to be updated every ___________.

One Year

3 Montha

6 Months

Five Years

33 / 50

Which of the following information about mutual fund distributors who have multiple points of presence (more than 20 locations) must be disclosed by the AMCs? A) Distributor-wise gross inflows and net inflows B) Average assets under management C) Total commission and expenses paid to distributors

B and C

A and C

A and B

All A, B and C

34 / 50

Indian mutual funds cannot invest in ______ .

Real Estate

Art

Securitised Debt

Gold

35 / 50

Which certification examination is mandated by SEBI for becoming a mutual fund distributor in the India?

NISM Series VA Mutual Fund Distributors

SEBI VA Mutual Fund Distributors

NCFM Series VA Mutual Fund Distributors

AMFI VA Mutual Fund Distributors

36 / 50

Dividends which are paid by mutual funds can be paid out of ________ .

Profits of the Asset Management Company

Mark to Market profits

All realised and unrealised gains

Distributable surplus only

37 / 50

A mutual fund distributor cannot charge a transaction fee on which of these transactions?

Systematic Transfer Plan

A new investor making a purchase in a mutual fund scheme

An existing investor making a purchase in a mutual fund scheme

Systematic Investment Plan (SIP)

38 / 50

By mistake the ARN number is wrongly mentioned in the application form. How will such an application be processed?

The application will be rejected

It will be returned for rectification

As an Direct Plan application

As a Regular Plan, provided the error being corrected within a time frame

39 / 50

SEBI Advertisement Code for Mutual Funds mentions the various guidelines to be followed by __________.

the investors who are interpreting the performance of their investments

the AMC’s while it is advertising the performance of their funds

the distributors while advertising their various services

the fund managers while monitoring the performance of the schemes they manage

40 / 50

A bond issued by a company has a coupon of 7%. The interest rate in the market for bonds of similar tenor and credit quality is now 8%. An investor holding the bond will see
_____ .

The market price of the bond going up

The market price of the bond going down

The coupon of the bond going up

No change in the market price

41 / 50

When the distributors are empanelled, the mutual funds should categorize the customer relationship and transactions in which of the following ways ?

Advisory , Sale

Advisory , Execution

Financial Planning, Distribution

Priority Sale, Retail Sale

42 / 50

The actual performance of an index fund can be better or worse than its benchmark due to _________ .

Arbitrage error

Tracking error

Systematic risk

Investment objective

43 / 50

A creditable benchmark of a mutual fund scheme should be in sync with the __________ . A) Size of scheme B) Investment objective of the scheme C) Investment strategy of the
scheme D) Expenses ratio of the scheme E) Asset allocation pattern of the scheme

B, C and E

A, C and D

B, D and E

A and B

44 / 50

______ is / are Non Financial transaction(s) in a mutual fund. A) Switch B) Pledge of units
C) Nomination D) Transmission

A, B and C

B,C and D

A, C and D

C and D

45 / 50

Which of these documents is NOT required to be submitted by institutional investors while investing in mutual funds?

Profit and Loss Statement

PAN card copy

List of authorised signatories

Memorandum of Association and Articles of Association

46 / 50

To whom does the profits or losses made by the mutual fund belong?

The investors

The Asset Management Company

Fund Managers

Trustees

47 / 50

The expenses on ________ cannot be charged to the mutual fund scheme.

Custodian fees

Depreciation on fixed assets of the Asset Management Company

Trustee Fees

Marketing Expenses

48 / 50

Multi Asset Allocation funds invest in at least _____ asset classes with a minimum allocation of at least 10 percent in each class.

49 / 50

For life-long investment is gold one should prefer Gold Futures as against Gold ETF -True or False?

True

False

50 / 50

Asset allocation must primarily match ________.

Long term value creation

Investment needs

Financial goals

Tax saving needs

Your score is

The average score is 65%

This NISM Series V-A Mock Test 10 will help you become familiar with the exam format, assess your knowledge, and identify areas that may need further study.

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

Good Luck with your preparation for the NISM Series V-A Mutual Fund Distributor Exam!

Mock Test 1 | Mock Test 2 | Mock Test 3 | Mock Test 4 | Mock Test 5 | Mock Test 6 | Mock Test 7 | Mock Test 8 | Mock Test 9 | Mock Test 10

For the latest and most accurate information, please visit the NISM website at https://certifications.nism.ac.in/nismaol/.

Business model, experience and proficiency in the business is a compulsory criteria for empanelment and review of which of the following category of mutual fund distributors?

Stamp duty is required to be paid for which of these mutual fund transactions?

A. New purchases B. Systematic Investment Plan (SIP) C. Dividend reinvestment D. Systematic Transfer Plan (STP

What should an investor see to evaluate the Consistency of Mutual Fund scheme performance ?

In which categories of stocks do Multi Cap equity funds invest in ?

Which type of transactions are allowed on a stock exchange platform for mutual fund trading? A - Redemptions B - Fresh subscription C - Additional purchases

Where are the 'Standard Risk Factors' of a Mutual Fund scheme disclosed?

What is the role of the custodian of a mutual fund?

If a person has to trade in units of a closed-ended mutual fund on the stock exchange platform then the units have to be held in _______ .

Floating interest rate is _________ .

A mutual fund has to report which of the following information of an investor who comes under the Foreign Account Tax Compliance Act (FATCA)?

In an Arbitrage fund, the minimum investment in equity and equity related instruments shall be ______ of total assets.

An mutual fund application form with multiple holders has to be signed by ______ .

Which of these is a key advantage of Exchange Traded Funds (ETFs) ?

With respect to the procedure for getting empanelled as a mutual fund distributor with AMC, the applicant needs to sign a declaration for _______ .

Return from a fund is 11.5% and the risk free rate is 7%, the Standard deviation is 3 & Beta is 1.9. What will be the denominator for calculating the Sharpe ratio?

When is a Consolidated Account Statement (CAS) dispatched to the investor?

Identify the duty of a SPONSOR of a mutual fund -

Which strategy can be used to ensure that a mutual fund scheme is suitable to the investors need and situation?

Which of these documents have to be updated once in a year?

The average net assets of a fund were Rs 800 crore and the investment transactions of the fund were Rs 1600 crore. Calculate the Portfolio Turnover Ratio.

Which amongst the following bias can lead to concentrated portfolio?

The NAV applicable for purchase in a gilt fund of Rs. 50 Lakhs if the cheque is received after 2 pm will be _____ .

Equity Linked Savings Schemes (ELSS) are eligible for deduction under Section 80C of the Income Tax Act. However, such schemes have a lock-in period of _______ from the date of investment.

There are no SEBI regulations regarding the minimum or maximum commission that distributors can earn - State True or False ?

State True or False - Long term capital loss can only be set off against long term capital gain.

The main purpose why SEBI has issued norms for investments by mutual fund schemes is to _________.

The loss booked from a equity investment of 18 months can be set off against ________ .

Which document will an investor look at if he has to know the fundamental attributes of a mutual fund scheme?

Mutual funds in India are governed by SEBI (Mutual Fund) Regulations, 1996 - True or False

Which of these is an important criteria for choosing either Growth option or Dividend option in the same mutual fund scheme?

In case of a floater Fund, what is the Required Minimum Investment in floating rate investment of total assets invested?

KIM has to be updated every ___________.

Which of the following information about mutual fund distributors who have multiple points of presence (more than 20 locations) must be disclosed by the AMCs? A) Distributor-wise gross inflows and net inflows B) Average assets under management C) Total commission and expenses paid to distributors

Indian mutual funds cannot invest in ______ .

Which certification examination is mandated by SEBI for becoming a mutual fund distributor in the India?

Dividends which are paid by mutual funds can be paid out of ________ .

A mutual fund distributor cannot charge a transaction fee on which of these transactions?

By mistake the ARN number is wrongly mentioned in the application form. How will such an application be processed?

SEBI Advertisement Code for Mutual Funds mentions the various guidelines to be followed by __________.

A bond issued by a company has a coupon of 7%. The interest rate in the market for bonds of similar tenor and credit quality is now 8%. An investor holding the bond will see _____ .

When the distributors are empanelled, the mutual funds should categorize the customer relationship and transactions in which of the following ways ?

The actual performance of an index fund can be better or worse than its benchmark due to _________ .

A creditable benchmark of a mutual fund scheme should be in sync with the __________ . A) Size of scheme B) Investment objective of the scheme C) Investment strategy of the scheme D) Expenses ratio of the scheme E) Asset allocation pattern of the scheme

______ is / are Non Financial transaction(s) in a mutual fund. A) Switch B) Pledge of units C) Nomination D) Transmission

Which of these documents is NOT required to be submitted by institutional investors while investing in mutual funds?

To whom does the profits or losses made by the mutual fund belong?

The expenses on ________ cannot be charged to the mutual fund scheme.

Multi Asset Allocation funds invest in at least _____ asset classes with a minimum allocation of at least 10 percent in each class.

For life-long investment is gold one should prefer Gold Futures as against Gold ETF -True or False?

Asset allocation must primarily match ________.

Good Luck with your preparation for the NISM Series V-A Mutual Fund Distributor Exam!

Mock Test 1 | Mock Test 2 | Mock Test 3 | Mock Test 4 | Mock Test 5 | Mock Test 6 | Mock Test 7 | Mock Test 8 | Mock Test 9 | Mock Test 10

Which type of transactions are allowed on a stock exchange platform for mutual fund
trading? A - Redemptions B - Fresh subscription C - Additional purchases

A bond issued by a company has a coupon of 7%. The interest rate in the market for bonds of similar tenor and credit quality is now 8%. An investor holding the bond will see
_____ .

A creditable benchmark of a mutual fund scheme should be in sync with the __________ . A) Size of scheme B) Investment objective of the scheme C) Investment strategy of the
scheme D) Expenses ratio of the scheme E) Asset allocation pattern of the scheme

______ is / are Non Financial transaction(s) in a mutual fund. A) Switch B) Pledge of units
C) Nomination D) Transmission