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

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

Only A is true

None of them are True

Both A and B are True

2 / 50

Credit rating enables an investors to judge the

Risk of default by borrower

Interest rate risk

Extent of securities against the borrowing

Duration of loan

3 / 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

4 / 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

5 / 50

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

SWP

SIP

Value investment

STP

6 / 50

Exit loads are generally lower for large investors

True

False

7 / 50

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

Half of it's

High

Entire

Low

8 / 50

The investment in MF portfolio are valued at

Market value of portfolio

Face value of portfolio

cost of investment

Book value of portfolio

9 / 50

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

Nomination Form

None of the above

KIM

Application form

10 / 50

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

1.2

0.024

0.175

0.05

11 / 50

Mutual funds in India are not permitted to invest in

Art

Secularized deb

Gold

Real estate

12 / 50

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

Fund Factsheet

Documents filed with SEBI

Scheme Information Documents (SID)

Key Information Memorandum (KIM)

13 / 50

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

Bank FD

Bonds

Equity

Gold

14 / 50

Index funds are safer because their NAV does not go down

FALSE

TRUE

15 / 50

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

TRUE

FALSE

16 / 50

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

TRUE

FALSE

17 / 50

The lower risk among equity fund is

Value Fund

Growth fund

Dividend yield fund

Index Fund

18 / 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

19 / 50

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

Treynor

Sharpe

Alpha

Spread

20 / 50

CRISIL's indicator for highest safety in a debenture is

High

Good

P1+

AAA

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 should also have a folio with the mutual fund

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

22 / 50

Which of the following is true

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

STT is payable when investor purchase debt MF

23 / 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

cant say

Be worse than benchmark return

Be comparable to that of benchmark index

24 / 50

SIP is a good investment strategy because..

It offers benefits of rupee cost averaging

Investor gets units at a discount to NAV

It helps regular income for investor

No load investment done

25 / 50

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

6 months

1 years

5 years

3 years

26 / 50

Returns in international fund is dependent on

None of the above

Asset class performance

Both of the above

Exchange rates

27 / 50

STT is charged on

Derivatives trading

All of the above

Equity share trading

Equity MF

28 / 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

cant say

1000

29 / 50

Which of the following is not government saving scheme?

KVP

POST

Infrastructure Bonds

RBI Bonds

30 / 50

Fundamental analysts are called "Chartists"

FALSE

TRUE

31 / 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 to launch the fund

Expenses which are incurred by investors in buying the fund

32 / 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

33 / 50

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

PPF

Real-Estate

Bank FD

Bonds

34 / 50

A mutual fund distributor is paid commission for..

As long as investor held the investment

First 3 years of Investment done by investor

First 5 years of Investment done by investor

First 10 years of investment done by investor

35 / 50

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

ACE

AGNI

AMFI

none of above

36 / 50

Performance of fund must always be measured relative to the

Investment objective

Asset Class

Benchmark

Index

37 / 50

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

Absolute return

Simple annualized

CAGR

Total return

38 / 50

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

FALSE

TRUE

39 / 50

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

Closing NAV of day fund are available

Next business day

Next preceding day

Same day

40 / 50

Which of the followings is physical asset?

Securised deb

Real estate fund

Gold future

Real estate

41 / 50

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

Tracking error

Past performance

R-squared

BETA Coefficient

42 / 50

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

Recurring Expenses

Exit load

Entry Load

CDSC

43 / 50

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

FALSE

TRUE

44 / 50

Which of the following is not required for KYC norms.

Proof of investment

Proof of Identity

All of the above

Proof of address

45 / 50

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

6 months

12 months

9 months

13 months

46 / 50

Time stamping arrangement is must at...

Offices of distributors

AMC offices

Bank distributor's branch

Offices declared as point of acceptance.

47 / 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 the date of application

Closing NAV of Day immediately preceding next business day

Next working day

48 / 50

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

certificate of registration

Trust deed

Board resolution and Memorandum and article of association

List of authorized signatories

49 / 50

Balance funds are for

Aggressive investors

Highly conservative

Moderate conservative

highly aggressive investor

50 / 50

Which of the followings are least comparable

Liquid and Savings accoun

ETF and Index fund

Liquid and Current account

GILT and Sector fund

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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