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

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)

2 / 50

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

BETA Coefficient

R-squared

Tracking error

Past performance

3 / 50

SIP is a good investment strategy because..

No load investment done

Investor gets units at a discount to NAV

It offers benefits of rupee cost averaging

It helps regular income for investor

4 / 50

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

0.024

1.2

0.05

0.175

5 / 50

The investment in MF portfolio are valued at

cost of investment

Face value of portfolio

Market value of portfolio

Book value of portfolio

6 / 50

Credit rating enables an investors to judge the

Extent of securities against the borrowing

Risk of default by borrower

Interest rate risk

Duration of loan

7 / 50

Exit loads are generally lower for large investors

False

True

8 / 50

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

FALSE

TRUE

9 / 50

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

TRUE

FALSE

10 / 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

Closing NAV of Day immediately preceding next business day

Closing NAV of Day immediately preceding the date of application

Same day

11 / 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

12 / 50

Returns in international fund is dependent on

Asset class performance

None of the above

Both of the above

Exchange rates

13 / 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 by investors in buying the fund

Expenses which are incurred to manage the fund

Expenses which are incurred by the AMC

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

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

15 / 50

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

Low

High

Half of it's

Entire

16 / 50

Balance funds are for

highly aggressive investor

Aggressive investors

Highly conservative

Moderate conservative

17 / 50

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

5 years

3 years

1 years

6 months

18 / 50

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

TRUE

FALSE

19 / 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

Only B is True

None of them are True

Only A is true

20 / 50

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

Bank FD

Real-Estate

Bonds

PPF

21 / 50

Index funds are safer because their NAV does not go down

TRUE

FALSE

22 / 50

Unaudited accounts of the scheme must be published

Only at AMFI website

Once every six month in one national & Regional news paper

through monthly fact sheet

Only on AMC's website

23 / 50

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

Exit load

Recurring Expenses

CDSC

Entry Load

24 / 50

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

Next preceding day

Next business day

Closing NAV of day fund are available

Same day

25 / 50

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

cant say

Be comparable to that of benchmark index

Better than benchmark return

Be worse than benchmark return

26 / 50

Which of the followings is physical asset?

Real estate fund

Gold future

Real estate

Securised deb

27 / 50

Which of the followings are least comparable

GILT and Sector fund

ETF and Index fund

Liquid and Savings accoun

Liquid and Current account

28 / 50

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

CAGR

Total return

Absolute return

Simple annualized

29 / 50

Which of the following is not government saving scheme?

POST

Infrastructure Bonds

RBI Bonds

KVP

30 / 50

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

none of above

AMFI

ACE

AGNI

31 / 50

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

Value investment

STP

SWP

SIP

32 / 50

The lower risk among equity fund is

Value Fund

Dividend yield fund

Index Fund

Growth fund

33 / 50

Which of the following is not required for KYC norms.

Proof of investment

Proof of Identity

Proof of address

All of the above

34 / 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?

4000 units

20000 units

Will be lower than 20000 units due to entry load

Will be lower than 4000 units due to entry load

35 / 50

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

Anchoring bias

Overconfidence / Optimism bias

Recency bias

Herd Mentality bias

36 / 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

37 / 50

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

Sharpe

Treynor

Alpha

Spread

38 / 50

Which of the following is true

STT is payable when investor does redemption from equity MF

STT is payable when investor purchase equity MF

STT is payable when investor sale debt MF

STT is payable when investor purchase debt MF

39 / 50

CRISIL's indicator for highest safety in a debenture is

P1+

AAA

Good

High

40 / 50

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

Bonds

Bank FD

Gold

Equity

41 / 50

Mutual funds in India are not permitted to invest in

Secularized deb

Art

Real estate

Gold

42 / 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

1000

1200

<1000

43 / 50

Performance of fund must always be measured relative to the

Asset Class

Index

Investment objective

Benchmark

44 / 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

45 / 50

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

Trust deed

certificate of registration

Board resolution and Memorandum and article of association

List of authorized signatories

46 / 50

STT is charged on

All of the above

Equity share trading

Equity MF

Derivatives trading

47 / 50

Fundamental analysts are called "Chartists"

FALSE

TRUE

48 / 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

First 3 years of Investment done by investor

As long as investor held the investment

49 / 50

Time stamping arrangement is must at...

AMC offices

Offices declared as point of acceptance.

Bank distributor's branch

Offices of distributors

50 / 50

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

FALSE

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.

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

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