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

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

Nomination Form

None of the above

Application form

KIM

2 / 50

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

7750

10% Plus surcharge or 20% after index benefit

750

Insufficient details

3 / 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

Both A and B are True

None of them are True

Only A is true

Only B is True

4 / 50

Credit rating enables an investors to judge the

Interest rate risk

Risk of default by borrower

Extent of securities against the borrowing

Duration of loan

5 / 50

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

FALSE

TRUE

6 / 50

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

Entire

High

Half of it's

Low

7 / 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 20000 units due to entry load

4000 units

20000 units

Will be lower than 4000 units due to entry load

8 / 50

Which of the followings are least comparable

ETF and Index fund

Liquid and Current account

GILT and Sector fund

Liquid and Savings accoun

9 / 50

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

List of authorized signatories

Board resolution and Memorandum and article of association

certificate of registration

Trust deed

10 / 50

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

5 years

1 years

3 years

6 months

11 / 50

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

Recency bias

Herd Mentality bias

Overconfidence / Optimism bias

Anchoring bias

12 / 50

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

Be worse than benchmark return

Better than benchmark return

cant say

Be comparable to that of benchmark index

13 / 50

STT is charged on

Equity MF

All of the above

Derivatives trading

Equity share trading

14 / 50

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

Alpha

Sharpe

Treynor

Spread

15 / 50

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

Key Information Memorandum (KIM)

Documents filed with SEBI

Fund Factsheet

Scheme Information Documents (SID)

16 / 50

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

Same day

Closing NAV of Day immediately preceding next business day

Next working day

Closing NAV of Day immediately preceding the date of application

17 / 50

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

Tracking error

R-squared

Past performance

BETA Coefficient

18 / 50

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

STP

SIP

Value investment

SWP

19 / 50

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

Bank FD

Bonds

Gold

Equity

20 / 50

Mutual funds in India are not permitted to invest in

Real estate

Secularized deb

Gold

Art

21 / 50

The investment in MF portfolio are valued at

cost of investment

Book value of portfolio

Market value of portfolio

Face value of portfolio

22 / 50

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

Next preceding day

Closing NAV of day fund are available

Next business day

Same day

23 / 50

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

none of above

AMFI

AGNI

ACE

24 / 50

CRISIL's indicator for highest safety in a debenture is

High

Good

AAA

P1+

25 / 50

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

FALSE

TRUE

26 / 50

Which of the following is not required for KYC norms.

Proof of address

Proof of investment

All of the above

Proof of Identity

27 / 50

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

Bank FD

Real-Estate

PPF

Bonds

28 / 50

SIP is a good investment strategy because..

It offers benefits of rupee cost averaging

Investor gets units at a discount to NAV

No load investment done

It helps regular income for investor

29 / 50

Fundamental analysts are called "Chartists"

FALSE

TRUE

30 / 50

Exit loads are generally lower for large investors

True

False

31 / 50

Performance of fund must always be measured relative to the

Investment objective

Benchmark

Asset Class

Index

32 / 50

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

0.024

0.175

1.2

0.05

33 / 50

Index funds are safer because their NAV does not go down

TRUE

FALSE

34 / 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

None of these

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

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

35 / 50

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

Recurring Expenses

CDSC

Exit load

Entry Load

36 / 50

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

Simple annualized

CAGR

Absolute return

Total return

37 / 50

A mutual fund distributor is paid commission for..

First 10 years of investment done by investor

First 5 years of Investment done by investor

First 3 years of Investment done by investor

As long as investor held the investment

38 / 50

Balance funds are for

Aggressive investors

Moderate conservative

Highly conservative

highly aggressive investor

39 / 50

Time stamping arrangement is must at...

Bank distributor's branch

Offices declared as point of acceptance.

Offices of distributors

AMC offices

40 / 50

Which of the following is not government saving scheme?

Infrastructure Bonds

RBI Bonds

POST

KVP

41 / 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

<1000

1200

42 / 50

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

FALSE

TRUE

43 / 50

The lower risk among equity fund is

Dividend yield fund

Index Fund

Growth fund

Value Fund

44 / 50

Which of the followings is physical asset?

Gold future

Real estate

Securised deb

Real estate fund

45 / 50

Unaudited accounts of the scheme must be published

through monthly fact sheet

Only on AMC's website

Once every six month in one national & Regional news paper

Only at AMFI website

46 / 50

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

13 months

9 months

12 months

6 months

47 / 50

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

TRUE

FALSE

48 / 50

Which of the following is true

STT is payable when investor purchase equity MF

STT is payable when investor sale debt MF

STT is payable when investor purchase debt MF

STT is payable when investor does redemption from equity MF

49 / 50

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

Expenses which are incurred to launch the fund

Expenses which are incurred to manage the fund

Expenses which are incurred by investors in buying the fund

Expenses which are incurred by the AMC

50 / 50

Returns in international fund is dependent on

Asset class performance

None of the above

Both of the above

Exchange rates

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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