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

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

2 / 50

Which of the following is not required for KYC norms.

Proof of investment

Proof of address

All of the above

Proof of Identity

3 / 50

Index funds are safer because their NAV does not go down

TRUE

FALSE

4 / 50

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

Documents filed with SEBI

Fund Factsheet

Key Information Memorandum (KIM)

Scheme Information Documents (SID)

5 / 50

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

SIP

SWP

STP

Value investment

6 / 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 4000 units due to entry load

Will be lower than 20000 units due to entry load

7 / 50

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

Total return

Absolute return

CAGR

Simple annualized

8 / 50

CRISIL's indicator for highest safety in a debenture is

P1+

High

Good

AAA

9 / 50

Credit rating enables an investors to judge the

Risk of default by borrower

Duration of loan

Interest rate risk

Extent of securities against the borrowing

10 / 50

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

ACE

AGNI

none of above

AMFI

11 / 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

12 / 50

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

750

Insufficient details

7750

10% Plus surcharge or 20% after index benefit

13 / 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

14 / 50

Returns in international fund is dependent on

Asset class performance

Exchange rates

Both of the above

None of the above

15 / 50

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

FALSE

TRUE

16 / 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

17 / 50

Unaudited accounts of the scheme must be published

Only on AMC's website

through monthly fact sheet

Once every six month in one national & Regional news paper

Only at AMFI website

18 / 50

SIP is a good investment strategy because..

It offers benefits of rupee cost averaging

No load investment done

Investor gets units at a discount to NAV

It helps regular income for investor

19 / 50

Exit loads are generally lower for large investors

False

True

20 / 50

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

Tracking error

Past performance

BETA Coefficient

R-squared

21 / 50

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

FALSE

TRUE

22 / 50

Mutual funds in India are not permitted to invest in

Art

Secularized deb

Real estate

Gold

23 / 50

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

Bonds

Gold

Bank FD

Equity

24 / 50

Time stamping arrangement is must at...

Offices declared as point of acceptance.

Offices of distributors

AMC offices

Bank distributor's branch

25 / 50

The investment in MF portfolio are valued at

Book value of portfolio

Face value of portfolio

Market value of portfolio

cost of investment

26 / 50

Performance of fund must always be measured relative to the

Benchmark

Index

Asset Class

Investment objective

27 / 50

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

Entire

Low

Half of it's

High

28 / 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

Both A and B are True

Only B is True

None of them are True

Only A is true

29 / 50

The lower risk among equity fund is

Index Fund

Growth fund

Value Fund

Dividend yield fund

30 / 50

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

Bonds

Real-Estate

Bank FD

PPF

31 / 50

Balance funds are for

highly aggressive investor

Moderate conservative

Aggressive investors

Highly conservative

32 / 50

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

Entry Load

Exit load

CDSC

Recurring Expenses

33 / 50

Which of the following is true

STT is payable when investor purchase equity MF

STT is payable when investor purchase debt MF

STT is payable when investor does redemption from equity MF

STT is payable when investor sale debt MF

34 / 50

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

13 months

9 months

12 months

6 months

35 / 50

Which of the followings is physical asset?

Real estate

Gold future

Real estate fund

Securised deb

36 / 50

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

1 years

3 years

5 years

6 months

37 / 50

Which of the followings are least comparable

Liquid and Savings accoun

Liquid and Current account

ETF and Index fund

GILT and Sector fund

38 / 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

Closing NAV of day fund are available

Same day

39 / 50

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

Be comparable to that of benchmark index

Better than benchmark return

cant say

Be worse than benchmark return

40 / 50

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

0.024

0.175

1.2

0.05

41 / 50

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

FALSE

TRUE

42 / 50

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

Alpha

Sharpe

Treynor

Spread

43 / 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

44 / 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

45 / 50

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

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

Expenses which are incurred to manage the fund

46 / 50

Fundamental analysts are called "Chartists"

FALSE

TRUE

47 / 50

Which of the following is not government saving scheme?

POST

KVP

RBI Bonds

Infrastructure Bonds

48 / 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

49 / 50

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

TRUE

FALSE

50 / 50

STT is charged on

All of the above

Equity share trading

Derivatives trading

Equity MF

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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