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

Index funds are safer because their NAV does not go down

FALSE

TRUE

2 / 50

Fundamental analysts are called "Chartists"

TRUE

FALSE

3 / 50

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

12 months

9 months

6 months

13 months

4 / 50

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

FALSE

TRUE

5 / 50

Unaudited accounts of the scheme must be published

Once every six month in one national & Regional news paper

Only on AMC's website

Only at AMFI website

through monthly fact sheet

6 / 50

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

Sharpe

Spread

Alpha

Treynor

7 / 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

8 / 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

9 / 50

The investment in MF portfolio are valued at

Market value of portfolio

Face value of portfolio

cost of investment

Book value of portfolio

10 / 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.

cant say

<1000

1200

1000

11 / 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

Application form

KIM

12 / 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

13 / 50

The lower risk among equity fund is

Growth fund

Index Fund

Dividend yield fund

Value Fund

14 / 50

Which of the following is true

STT is payable when investor does redemption from equity MF

STT is payable when investor sale debt MF

STT is payable when investor purchase equity MF

STT is payable when investor purchase debt MF

15 / 50

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

0.05

0.024

0.175

1.2

16 / 50

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

Bank FD

Gold

Equity

Bonds

17 / 50

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

3 years

6 months

5 years

1 years

18 / 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 A is true

None of them are True

Only B is True

19 / 50

A mutual fund distributor is paid commission for..

First 5 years of Investment done by investor

First 3 years of Investment done by investor

As long as investor held the investment

First 10 years of investment done by investor

20 / 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

Closing NAV of Day immediately preceding the date of application

Next working day

Same day

21 / 50

Which of the followings is physical asset?

Gold future

Real estate fund

Securised deb

Real estate

22 / 50

Returns in international fund is dependent on

Both of the above

Exchange rates

None of the above

Asset class performance

23 / 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)

24 / 50

Which of the followings are least comparable

GILT and Sector fund

ETF and Index fund

Liquid and Current account

Liquid and Savings accoun

25 / 50

Credit rating enables an investors to judge the

Interest rate risk

Extent of securities against the borrowing

Duration of loan

Risk of default by borrower

26 / 50

Time stamping arrangement is must at...

AMC offices

Offices declared as point of acceptance.

Offices of distributors

Bank distributor's branch

27 / 50

Which of the following is not government saving scheme?

RBI Bonds

Infrastructure Bonds

KVP

POST

28 / 50

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

CAGR

Simple annualized

Total return

Absolute return

29 / 50

Balance funds are for

highly aggressive investor

Aggressive investors

Highly conservative

Moderate conservative

30 / 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

None of these

The minimum investment has to be Rs. 50,000

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

31 / 50

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

FALSE

TRUE

32 / 50

Performance of fund must always be measured relative to the

Asset Class

Investment objective

Index

Benchmark

33 / 50

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

Anchoring bias

Recency bias

Herd Mentality bias

Overconfidence / Optimism bias

34 / 50

Exit loads are generally lower for large investors

True

False

35 / 50

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

Half of it's

Low

Entire

High

36 / 50

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

PPF

Bonds

Bank FD

Real-Estate

37 / 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

7750

Insufficient details

750

38 / 50

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

AGNI

none of above

AMFI

ACE

39 / 50

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

Exit load

Entry Load

CDSC

Recurring Expenses

40 / 50

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

cant say

Be worse than benchmark return

Be comparable to that of benchmark index

Better than benchmark return

41 / 50

Mutual funds in India are not permitted to invest in

Gold

Real estate

Secularized deb

Art

42 / 50

STT is charged on

All of the above

Equity share trading

Equity MF

Derivatives trading

43 / 50

CRISIL's indicator for highest safety in a debenture is

P1+

High

AAA

Good

44 / 50

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

TRUE

FALSE

45 / 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

46 / 50

Which of the following is not required for KYC norms.

Proof of investment

Proof of address

All of the above

Proof of Identity

47 / 50

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

Value investment

STP

SWP

SIP

48 / 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

49 / 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

Will be lower than 20000 units due to entry load

4000 units

Will be lower than 4000 units due to entry load

50 / 50

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

FALSE

TRUE

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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