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

Secularized deb

Gold

Real estate

Art

2 / 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 next business day

Same day

Closing NAV of Day immediately preceding the date of application

Next working day

3 / 50

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

Value investment

SIP

STP

SWP

4 / 50

Performance of fund must always be measured relative to the

Asset Class

Index

Investment objective

Benchmark

5 / 50

Returns in international fund is dependent on

Both of the above

Asset class performance

None of the above

Exchange rates

6 / 50

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

R-squared

Tracking error

Past performance

BETA Coefficient

7 / 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

8 / 50

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

Sharpe

Treynor

Alpha

Spread

9 / 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

10 / 50

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

0.024

1.2

0.175

0.05

11 / 50

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

TRUE

FALSE

12 / 50

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

PPF

Real-Estate

Bank FD

Bonds

13 / 50

The lower risk among equity fund is

Dividend yield fund

Index Fund

Growth fund

Value Fund

14 / 50

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

Equity

Bonds

Bank FD

Gold

15 / 50

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

10% Plus surcharge or 20% after index benefit

Insufficient details

7750

750

16 / 50

Fundamental analysts are called "Chartists"

FALSE

TRUE

17 / 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

Only A is true

Both A and B are True

18 / 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 to manage the fund

Expenses which are incurred by investors in buying the fund

Expenses which are incurred to launch the fund

19 / 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)

20 / 50

Which of the following is not government saving scheme?

KVP

RBI Bonds

POST

Infrastructure Bonds

21 / 50

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

3 years

6 months

5 years

1 years

22 / 50

Exit loads are generally lower for large investors

True

False

23 / 50

Which of the followings are least comparable

GILT and Sector fund

Liquid and Savings accoun

ETF and Index fund

Liquid and Current account

24 / 50

Which of the following is not required for KYC norms.

Proof of Identity

All of the above

Proof of address

Proof of investment

25 / 50

CRISIL's indicator for highest safety in a debenture is

AAA

High

Good

P1+

26 / 50

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

High

Half of it's

Low

Entire

27 / 50

Which of the followings is physical asset?

Real estate

Gold future

Real estate fund

Securised deb

28 / 50

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

Simple annualized

CAGR

Total return

Absolute return

29 / 50

SIP is a good investment strategy because..

Investor gets units at a discount to NAV

It helps regular income for investor

No load investment done

It offers benefits of rupee cost averaging

30 / 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

31 / 50

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

TRUE

FALSE

32 / 50

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

Next business day

Same day

Next preceding day

Closing NAV of day fund are available

33 / 50

Unaudited accounts of the scheme must be published

through monthly fact sheet

Only on AMC's website

Once every six month in one national & Regional news paper

Only at AMFI website

34 / 50

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

AMFI

none of above

AGNI

ACE

35 / 50

A mutual fund distributor is paid commission for..

First 5 years of Investment done by investor

First 10 years of investment done by investor

First 3 years of Investment done by investor

As long as investor held the investment

36 / 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

KIM

Nomination Form

37 / 50

Balance funds are for

Highly conservative

Moderate conservative

highly aggressive investor

Aggressive investors

38 / 50

Credit rating enables an investors to judge the

Risk of default by borrower

Extent of securities against the borrowing

Duration of loan

Interest rate risk

39 / 50

Index funds are safer because their NAV does not go down

TRUE

FALSE

40 / 50

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

CDSC

Entry Load

Exit load

Recurring Expenses

41 / 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

42 / 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 comparable to that of benchmark index

Be worse than benchmark return

43 / 50

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

TRUE

FALSE

44 / 50

STT is charged on

Equity MF

Derivatives trading

All of the above

Equity share trading

45 / 50

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

Trust deed

Board resolution and Memorandum and article of association

List of authorized signatories

certificate of registration

46 / 50

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

12 months

6 months

13 months

9 months

47 / 50

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

FALSE

TRUE

48 / 50

The investment in MF portfolio are valued at

Market value of portfolio

cost of investment

Book value of portfolio

Face value of portfolio

49 / 50

Time stamping arrangement is must at...

Bank distributor's branch

Offices of distributors

AMC offices

Offices declared as point of acceptance.

50 / 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

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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