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

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

FALSE

TRUE

2 / 50

Index funds are safer because their NAV does not go down

TRUE

FALSE

3 / 50

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

TRUE

FALSE

4 / 50

SIP is a good investment strategy because..

It helps regular income for investor

Investor gets units at a discount to NAV

It offers benefits of rupee cost averaging

No load investment done

5 / 50

Which of the followings is physical asset?

Securised deb

Real estate

Real estate fund

Gold future

6 / 50

STT is charged on

Equity share trading

Equity MF

All of the above

Derivatives trading

7 / 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 purchase debt MF

STT is payable when investor sale debt MF

8 / 50

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

Application form

None of the above

Nomination Form

KIM

9 / 50

A mutual fund distributor is paid commission for..

As long as investor held the investment

First 10 years of investment done by investor

First 3 years of Investment done by investor

First 5 years of Investment done by investor

10 / 50

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

R-squared

BETA Coefficient

Past performance

Tracking error

11 / 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

12 / 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

Same day

Next business day

Next preceding day

13 / 50

Returns in international fund is dependent on

None of the above

Exchange rates

Asset class performance

Both of the above

14 / 50

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

PPF

Bonds

Real-Estate

Bank FD

15 / 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

1000

cant say

<1000

16 / 50

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

Treynor

Alpha

Sharpe

Spread

17 / 50

Which of the following is not required for KYC norms.

Proof of address

Proof of Identity

All of the above

Proof of investment

18 / 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

19 / 50

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

Entire

Low

High

Half of it's

20 / 50

Time stamping arrangement is must at...

Offices declared as point of acceptance.

Offices of distributors

AMC offices

Bank distributor's branch

21 / 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

22 / 50

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

Documents filed with SEBI

Key Information Memorandum (KIM)

Fund Factsheet

Scheme Information Documents (SID)

23 / 50

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

6 months

5 years

3 years

1 years

24 / 50

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

Bonds

Gold

Bank FD

Equity

25 / 50

Fundamental analysts are called "Chartists"

TRUE

FALSE

26 / 50

Credit rating enables an investors to judge the

Interest rate risk

Extent of securities against the borrowing

Risk of default by borrower

Duration of loan

27 / 50

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

12 months

6 months

9 months

13 months

28 / 50

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

FALSE

TRUE

29 / 50

Performance of fund must always be measured relative to the

Benchmark

Investment objective

Asset Class

Index

30 / 50

Unaudited accounts of the scheme must be published

Once every six month in one national & Regional news paper

through monthly fact sheet

Only at AMFI website

Only on AMC's website

31 / 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 minimum investment has to be Rs. 50,000

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

None of these

32 / 50

Which of the followings are least comparable

GILT and Sector fund

ETF and Index fund

Liquid and Current account

Liquid and Savings accoun

33 / 50

CRISIL's indicator for highest safety in a debenture is

P1+

High

AAA

Good

34 / 50

Exit loads are generally lower for large investors

False

True

35 / 50

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

none of above

AGNI

AMFI

ACE

36 / 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 investors in buying the fund

Expenses which are incurred by the AMC

Expenses which are incurred to launch the fund

37 / 50

The lower risk among equity fund is

Growth fund

Value Fund

Index Fund

Dividend yield fund

38 / 50

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

FALSE

TRUE

39 / 50

Mutual funds in India are not permitted to invest in

Art

Gold

Real estate

Secularized deb

40 / 50

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

Recurring Expenses

Entry Load

CDSC

Exit load

41 / 50

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

1.2

0.175

0.024

0.05

42 / 50

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

cant say

Better than benchmark return

Be worse than benchmark return

Be comparable to that of benchmark index

43 / 50

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

Simple annualized

CAGR

Total return

Absolute return

44 / 50

Balance funds are for

Aggressive investors

Moderate conservative

highly aggressive investor

Highly conservative

45 / 50

The investment in MF portfolio are valued at

cost of investment

Book value of portfolio

Market value of portfolio

Face value of portfolio

46 / 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?

20000 units

4000 units

Will be lower than 20000 units due to entry load

Will be lower than 4000 units due to entry load

47 / 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

None of them are True

Only B is True

Both A and B are True

Only A is true

48 / 50

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

SIP

STP

Value investment

SWP

49 / 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

Same day

Closing NAV of Day immediately preceding next business day

Closing NAV of Day immediately preceding the date of application

50 / 50

Which of the following is not government saving scheme?

RBI Bonds

Infrastructure Bonds

KVP

POST

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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