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

CRISIL's indicator for highest safety in a debenture is

Good

AAA

P1+

High

2 / 50

Balance funds are for

Highly conservative

Aggressive investors

Moderate conservative

highly aggressive investor

3 / 50

STT is charged on

All of the above

Equity share trading

Derivatives trading

Equity MF

4 / 50

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

Bank FD

Bonds

PPF

Real-Estate

5 / 50

Which of the followings are least comparable

GILT and Sector fund

Liquid and Savings accoun

ETF and Index fund

Liquid and Current account

6 / 50

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

Trust deed

List of authorized signatories

Board resolution and Memorandum and article of association

certificate of registration

7 / 50

Which of the following is not required for KYC norms.

All of the above

Proof of address

Proof of investment

Proof of Identity

8 / 50

Returns in international fund is dependent on

Both of the above

Exchange rates

Asset class performance

None of the above

9 / 50

Exit loads are generally lower for large investors

True

False

10 / 50

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

Bonds

Equity

Bank FD

Gold

11 / 50

The investment in MF portfolio are valued at

Market value of portfolio

Book value of portfolio

Face value of portfolio

cost of investment

12 / 50

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

7750

Insufficient details

750

10% Plus surcharge or 20% after index benefit

13 / 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 A is true

Both A and B are True

None of them are True

Only B is True

14 / 50

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

Tracking error

R-squared

BETA Coefficient

Past performance

15 / 50

Which of the following is not government saving scheme?

KVP

RBI Bonds

Infrastructure Bonds

POST

16 / 50

A mutual fund distributor is paid commission for..

First 5 years of Investment done by investor

As long as investor held the investment

First 3 years of Investment done by investor

First 10 years of investment done by investor

17 / 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)

18 / 50

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

Alpha

Sharpe

Treynor

Spread

19 / 50

The lower risk among equity fund is

Value Fund

Index Fund

Dividend yield fund

Growth fund

20 / 50

Which of the followings is physical asset?

Securised deb

Gold future

Real estate fund

Real estate

21 / 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 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

The minimum investment has to be Rs. 50,000

None of these

22 / 50

Performance of fund must always be measured relative to the

Asset Class

Index

Benchmark

Investment objective

23 / 50

Unaudited accounts of the scheme must be published

Once every six month in one national & Regional news paper

through monthly fact sheet

Only on AMC's website

Only at AMFI website

24 / 50

Mutual funds in India are not permitted to invest in

Art

Secularized deb

Gold

Real estate

25 / 50

Time stamping arrangement is must at...

Bank distributor's branch

Offices declared as point of acceptance.

AMC offices

Offices of distributors

26 / 50

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

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

Expenses which are incurred to manage the fund

27 / 50

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

0.175

0.05

1.2

0.024

28 / 50

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

3 years

5 years

6 months

1 years

29 / 50

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

FALSE

TRUE

30 / 50

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

SIP

Value investment

STP

SWP

31 / 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

32 / 50

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

TRUE

FALSE

33 / 50

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

Low

High

Half of it's

Entire

34 / 50

Fundamental analysts are called "Chartists"

FALSE

TRUE

35 / 50

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

cant say

Be worse than benchmark return

Be comparable to that of benchmark index

Better than benchmark return

36 / 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

37 / 50

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

None of the above

KIM

Nomination Form

Application form

38 / 50

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

Absolute return

Simple annualized

CAGR

Total return

39 / 50

Which of the following is true

STT is payable when investor sale debt MF

STT is payable when investor purchase debt MF

STT is payable when investor purchase equity MF

STT is payable when investor does redemption from equity MF

40 / 50

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

AMFI

ACE

none of above

AGNI

41 / 50

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

TRUE

FALSE

42 / 50

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

FALSE

TRUE

43 / 50

Credit rating enables an investors to judge the

Extent of securities against the borrowing

Duration of loan

Interest rate risk

Risk of default by borrower

44 / 50

Index funds are safer because their NAV does not go down

TRUE

FALSE

45 / 50

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

Next business day

Next preceding day

Closing NAV of day fund are available

Same day

46 / 50

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

12 months

9 months

13 months

6 months

47 / 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

Will be lower than 20000 units due to entry load

Will be lower than 4000 units due to entry load

20000 units

48 / 50

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

Recency bias

Overconfidence / Optimism bias

Herd Mentality bias

Anchoring bias

49 / 50

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

Exit load

Entry Load

Recurring Expenses

CDSC

50 / 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 the date of application

Closing NAV of Day immediately preceding next business day

Same day

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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