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

Mutual funds in India are not permitted to invest in

Real estate

Secularized deb

Gold

Art

2 / 50

Balance funds are for

Moderate conservative

Highly conservative

Aggressive investors

highly aggressive investor

3 / 50

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

R-squared

Past performance

BETA Coefficient

Tracking error

4 / 50

Unaudited accounts of the scheme must be published

Once every six month in one national & Regional news paper

Only on AMC's website

through monthly fact sheet

Only at AMFI website

5 / 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

<1000

1200

cant say

6 / 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

Closing NAV of Day immediately preceding next business day

Same day

7 / 50

The investment in MF portfolio are valued at

cost of investment

Book value of portfolio

Market value of portfolio

Face value of portfolio

8 / 50

Which of the following is not required for KYC norms.

All of the above

Proof of Identity

Proof of address

Proof of investment

9 / 50

A mutual fund distributor is paid commission for..

First 10 years of investment done by investor

As long as investor held the investment

First 3 years of Investment done by investor

First 5 years of Investment done by investor

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?

4000 units

20000 units

Will be lower than 4000 units due to entry load

Will be lower than 20000 units due to entry load

11 / 50

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

Bank FD

Gold

Equity

Bonds

12 / 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 by the AMC

Expenses which are incurred to launch the fund

Expenses which are incurred to manage the fund

13 / 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

Be comparable to that of benchmark index

cant say

Better than benchmark return

14 / 50

The lower risk among equity fund is

Dividend yield fund

Index Fund

Value Fund

Growth fund

15 / 50

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

Sharpe

Treynor

Alpha

Spread

16 / 50

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

0.175

0.05

1.2

0.024

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

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

Entry Load

Recurring Expenses

Exit load

CDSC

19 / 50

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

TRUE

FALSE

20 / 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 has to provide PAN details and als comply with KYC norms

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

21 / 50

Which of the followings is physical asset?

Securised deb

Real estate fund

Gold future

Real estate

22 / 50

Credit rating enables an investors to judge the

Risk of default by borrower

Duration of loan

Interest rate risk

Extent of securities against the borrowing

23 / 50

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

Absolute return

CAGR

Simple annualized

Total return

24 / 50

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

Nomination Form

KIM

Application form

None of the above

25 / 50

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

7750

750

10% Plus surcharge or 20% after index benefit

Insufficient details

26 / 50

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

ACE

none of above

AGNI

AMFI

27 / 50

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

SWP

SIP

STP

Value investment

28 / 50

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

Real-Estate

Bank FD

Bonds

PPF

29 / 50

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

Board resolution and Memorandum and article of association

List of authorized signatories

certificate of registration

Trust deed

30 / 50

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

Entire

High

Half of it's

Low

31 / 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

None of them are True

Both A and B are True

Only A is true

32 / 50

Exit loads are generally lower for large investors

True

False

33 / 50

Returns in international fund is dependent on

Both of the above

Asset class performance

None of the above

Exchange rates

34 / 50

CRISIL's indicator for highest safety in a debenture is

P1+

High

AAA

Good

35 / 50

Time stamping arrangement is must at...

Offices declared as point of acceptance.

AMC offices

Offices of distributors

Bank distributor's branch

36 / 50

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

TRUE

FALSE

37 / 50

Index funds are safer because their NAV does not go down

FALSE

TRUE

38 / 50

STT is charged on

Equity MF

Equity share trading

All of the above

Derivatives trading

39 / 50

SIP is a good investment strategy because..

Investor gets units at a discount to NAV

It helps regular income for investor

It offers benefits of rupee cost averaging

No load investment done

40 / 50

Which of the followings are least comparable

GILT and Sector fund

ETF and Index fund

Liquid and Savings accoun

Liquid and Current account

41 / 50

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

Scheme Information Documents (SID)

Fund Factsheet

Documents filed with SEBI

Key Information Memorandum (KIM)

42 / 50

Performance of fund must always be measured relative to the

Index

Investment objective

Asset Class

Benchmark

43 / 50

Fundamental analysts are called "Chartists"

TRUE

FALSE

44 / 50

Which of the following is true

STT is payable when investor purchase debt MF

STT is payable when investor does redemption from equity MF

STT is payable when investor sale debt MF

STT is payable when investor purchase equity MF

45 / 50

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

FALSE

TRUE

46 / 50

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

TRUE

FALSE

47 / 50

Which of the following is not government saving scheme?

KVP

POST

RBI Bonds

Infrastructure Bonds

48 / 50

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

Anchoring bias

Recency bias

Overconfidence / Optimism bias

Herd Mentality bias

49 / 50

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

Same day

Next preceding day

Next business day

Closing NAV of day fund are available

50 / 50

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

12 months

13 months

9 months

6 months

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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