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 investment in MF portfolio are valued at

Market value of portfolio

cost of investment

Face value of portfolio

Book value of portfolio

2 / 50

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

High

Entire

Low

Half of it's

3 / 50

The lower risk among equity fund is

Dividend yield fund

Value Fund

Index Fund

Growth fund

4 / 50

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

FALSE

TRUE

5 / 50

Fundamental analysts are called "Chartists"

TRUE

FALSE

6 / 50

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

ACE

AGNI

none of above

AMFI

7 / 50

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

Total return

Simple annualized

CAGR

Absolute return

8 / 50

SIP is a good investment strategy because..

No load investment done

It offers benefits of rupee cost averaging

It helps regular income for investor

Investor gets units at a discount to NAV

9 / 50

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

10% Plus surcharge or 20% after index benefit

7750

Insufficient details

750

10 / 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?

20000 units

Will be lower than 4000 units due to entry load

4000 units

Will be lower than 20000 units due to entry load

11 / 50

A mutual fund distributor is paid commission for..

First 5 years of Investment done by investor

First 3 years of Investment done by investor

As long as investor held the investment

First 10 years of investment done by investor

12 / 50

Credit rating enables an investors to judge the

Extent of securities against the borrowing

Interest rate risk

Risk of default by borrower

Duration of loan

13 / 50

Returns in international fund is dependent on

Exchange rates

Both of the above

Asset class performance

None of the above

14 / 50

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

Tracking error

Past performance

BETA Coefficient

R-squared

15 / 50

Which of the followings are least comparable

GILT and Sector fund

Liquid and Savings accoun

Liquid and Current account

ETF and Index fund

16 / 50

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

Bank FD

Bonds

Gold

Equity

17 / 50

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

SIP

Value investment

STP

SWP

18 / 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?

None of these

The minimum investment has to be Rs. 50,000

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

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

19 / 50

Which of the followings is physical asset?

Real estate fund

Real estate

Gold future

Securised deb

20 / 50

Which of the following is not government saving scheme?

Infrastructure Bonds

POST

RBI Bonds

KVP

21 / 50

Unaudited accounts of the scheme must be published

Only on AMC's website

Only at AMFI website

through monthly fact sheet

Once every six month in one national & Regional news paper

22 / 50

STT is charged on

Equity MF

Derivatives trading

All of the above

Equity share trading

23 / 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 B is True

Both A and B are True

None of them are True

Only A is true

24 / 50

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

Sharpe

Alpha

Treynor

Spread

25 / 50

Exit loads are generally lower for large investors

False

True

26 / 50

Balance funds are for

Aggressive investors

Moderate conservative

highly aggressive investor

Highly conservative

27 / 50

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

Expenses which are incurred to manage the fund

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

28 / 50

Index funds are safer because their NAV does not go down

FALSE

TRUE

29 / 50

Time stamping arrangement is must at...

AMC offices

Bank distributor's branch

Offices declared as point of acceptance.

Offices of distributors

30 / 50

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

TRUE

FALSE

31 / 50

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

Entry Load

CDSC

Recurring Expenses

Exit load

32 / 50

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

Key Information Memorandum (KIM)

Fund Factsheet

Documents filed with SEBI

Scheme Information Documents (SID)

33 / 50

Which of the following is not required for KYC norms.

Proof of Identity

Proof of address

All of the above

Proof of investment

34 / 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

1200

<1000

cant say

35 / 50

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

Recency bias

Herd Mentality bias

Anchoring bias

Overconfidence / Optimism bias

36 / 50

Mutual funds in India are not permitted to invest in

Secularized deb

Real estate

Art

Gold

37 / 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

Be comparable to that of benchmark index

cant say

Be worse than benchmark return

38 / 50

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

FALSE

TRUE

39 / 50

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

Next working day

Same day

Closing NAV of Day immediately preceding the date of application

Closing NAV of Day immediately preceding next business day

40 / 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

41 / 50

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

0.024

0.05

0.175

1.2

42 / 50

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

6 months

5 years

1 years

3 years

43 / 50

Performance of fund must always be measured relative to the

Asset Class

Investment objective

Benchmark

Index

44 / 50

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

List of authorized signatories

Trust deed

certificate of registration

Board resolution and Memorandum and article of association

45 / 50

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

PPF

Bonds

Bank FD

Real-Estate

46 / 50

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

TRUE

FALSE

47 / 50

Which of the following is true

STT is payable when investor sale debt MF

STT is payable when investor purchase equity MF

STT is payable when investor does redemption from equity MF

STT is payable when investor purchase debt MF

48 / 50

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

Same day

Next business day

Next preceding day

Closing NAV of day fund are available

49 / 50

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

12 months

6 months

9 months

13 months

50 / 50

CRISIL's indicator for highest safety in a debenture is

P1+

High

Good

AAA

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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