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

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

20000 units

Will be lower than 4000 units due to entry load

4000 units

2 / 50

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

CAGR

Total return

Simple annualized

Absolute return

3 / 50

Credit rating enables an investors to judge the

Interest rate risk

Risk of default by borrower

Duration of loan

Extent of securities against the borrowing

4 / 50

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

TRUE

FALSE

5 / 50

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

FALSE

TRUE

6 / 50

A mutual fund distributor is paid commission for..

First 3 years of Investment done by investor

First 5 years of Investment done by investor

As long as investor held the investment

First 10 years of investment done by investor

7 / 50

Fundamental analysts are called "Chartists"

TRUE

FALSE

8 / 50

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

0.05

0.175

1.2

0.024

9 / 50

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

FALSE

TRUE

10 / 50

Time stamping arrangement is must at...

AMC offices

Offices of distributors

Offices declared as point of acceptance.

Bank distributor's branch

11 / 50

Mutual funds in India are not permitted to invest in

Real estate

Gold

Art

Secularized deb

12 / 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

Same day

Closing NAV of day fund are available

13 / 50

CRISIL's indicator for highest safety in a debenture is

Good

P1+

High

AAA

14 / 50

Returns in international fund is dependent on

None of the above

Exchange rates

Asset class performance

Both of the above

15 / 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

10% Plus surcharge or 20% after index benefit

750

16 / 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.

1200

cant say

<1000

1000

17 / 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

18 / 50

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

3 years

1 years

5 years

6 months

19 / 50

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

AMFI

AGNI

none of above

ACE

20 / 50

The investment in MF portfolio are valued at

Market value of portfolio

Book value of portfolio

Face value of portfolio

cost of investment

21 / 50

Unaudited accounts of the scheme must be published

through monthly fact sheet

Only on AMC's website

Only at AMFI website

Once every six month in one national & Regional news paper

22 / 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 worse than benchmark return

cant say

Be comparable to that of benchmark index

23 / 50

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

6 months

13 months

9 months

12 months

24 / 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

Closing NAV of Day immediately preceding the date of application

Next working day

25 / 50

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

Exit load

Entry Load

CDSC

Recurring Expenses

26 / 50

Index funds are safer because their NAV does not go down

TRUE

FALSE

27 / 50

Exit loads are generally lower for large investors

False

True

28 / 50

Which of the followings are least comparable

Liquid and Current account

GILT and Sector fund

Liquid and Savings accoun

ETF and Index fund

29 / 50

Which of the followings is physical asset?

Real estate fund

Securised deb

Gold future

Real estate

30 / 50

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

SWP

Value investment

STP

SIP

31 / 50

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

Alpha

Sharpe

Treynor

Spread

32 / 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

Only A is true

None of them are True

33 / 50

Which of the following is true

STT is payable when investor purchase debt MF

STT is payable when investor purchase equity MF

STT is payable when investor sale debt MF

STT is payable when investor does redemption from equity MF

34 / 50

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

TRUE

FALSE

35 / 50

Balance funds are for

highly aggressive investor

Moderate conservative

Highly conservative

Aggressive investors

36 / 50

SIP is a good investment strategy because..

It helps regular income for investor

No load investment done

It offers benefits of rupee cost averaging

Investor gets units at a discount to NAV

37 / 50

The lower risk among equity fund is

Growth fund

Value Fund

Dividend yield fund

Index Fund

38 / 50

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

Bonds

Bank FD

Gold

Equity

39 / 50

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

None of the above

Nomination Form

Application form

KIM

40 / 50

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

Entire

Half of it's

Low

High

41 / 50

STT is charged on

Derivatives trading

Equity share trading

Equity MF

All of the above

42 / 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

43 / 50

Which of the following is not required for KYC norms.

All of the above

Proof of address

Proof of Identity

Proof of investment

44 / 50

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

BETA Coefficient

Past performance

R-squared

Tracking error

45 / 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

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

None of these

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

46 / 50

Performance of fund must always be measured relative to the

Index

Investment objective

Benchmark

Asset Class

47 / 50

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

Herd Mentality bias

Recency bias

Overconfidence / Optimism bias

Anchoring bias

48 / 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)

49 / 50

Which of the following is not government saving scheme?

Infrastructure Bonds

KVP

RBI Bonds

POST

50 / 50

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

Bank FD

PPF

Real-Estate

Bonds

Your score is

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

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