Mock Test 9 - TheMFCentral

NISM V-A Mock Test 9

NISM V-A (Mutual Fund Distributor Module) Exam | Mock Test 9

1 / 50

To whom does the profits or losses made by the mutual fund belong?

The investors

The Asset Management Company

Fund Managers

Trustees

2 / 50

As per SEBI regulations, a mutual fund scheme should have at least ________ investors.

3 / 50

What action has to be taken before deleting a default bank account from the registered bank account in a mutaul fund folio?

A new folio will have to be opened with the same joint holding as the new default account

Another account has to be designated as the default bank account

All the nominees of the mutual fund scheme have to sign on the change form irrespective of the mode of holding

4 / 50

The Asset Management Companies have to disclose the Total Expense Ratios (TER) of the various schemes on their websites on a ______ basis.

Daily

Weekly

Monthly

Annual

5 / 50

Financial goals have to be defined in terms of _______ .

Time horizon and external funds required

Costs and economic policies

Aspiration and desires

Time horizon and money needed

6 / 50

If the sale and purchase transactions for a year amounted to Rs. 10,000 crore, and the average size of net assets is Rs. 5,000 crore, this means that investments are held in the portfolio, on an average for ________ .

2 months

3 months

6 months

12 months

7 / 50

Investors tend to extrapolate the current event into the future and expect a repeat. This is an example of ________ bias.

Overconfidence

Recency

Herd Mentality

Familiarity

8 / 50

________ is a proper benchmark for a balanced hybrid scheme.

CRISIL Hybrid 75+25 , Conservative Index

CRISIL Hybrid 25+75 , Aggressive Index

CRISIL Hybrid 50+50 , Moderate Index

9 / 50

Long Duration debt scheme invests in debt instruments with Macaulay duration _____ .

between 1 year and 3 years

below 1 year

greater than 7 years

6 months and 12 months

10 / 50

When the asset allocation is maintained as a constant ratio by regular rebalancing of portfolio, it is known as ________ .

Dynamic asset allocation

Flexible asset allocation

Fixed asset allocation

Variable asset allocation

11 / 50

For which of these documents is Time Stamping mandatory?

Payment instrument only

Application form only

Transaction slip for buying additional un

Both for Application form Transaction Slip and Payment Instrument

12 / 50

Segregated portfolio means _________ .

A portfolio which is kept aside for a ‘rainy day’ or contingency fund

A Portfolio which is created out of debt or money market securities affected by a credit event

A portfolio which is left after removing poor credit quality papers

All of the above

13 / 50

What is the purpose of ‘credit enhancement’ in case of securitised transaction?

Payment of higher coupon Generating capital gain

Generating capital gain

Higher credit worthines

14 / 50

Banks and NBFC's can lend money against ________ of mutual fund units.

Nomination Redemption

Redemption

Pledge

All of the above

15 / 50

Whom should the investor approach if his complaint is not resolved by the Asset Management Company (AMC)?

Securities and Exchange Board of India (SEBI)

Custodian

Company Law Board

Ombudsman

16 / 50

Inflation Risk is also referred as _______.

Credit Risk

Liquidity Risk

Purchasing Power Risk

17 / 50

Which of these statement(s) is/are FALSE?

If an investor holds his investments in a debt fund for more than three years, the capital gain will be considered as a long term capital gain

As the purchase and re-purchase is done with the mutual fund, the investor does not have to pay any capital gain tax

Both 'a' and 'b' are false

18 / 50

Long term capital gains is NOT taxed in which of these funds? A. Balanced Advantage Funds B. Balanced Funds C. Diversified Equity Funds

Both A and B

Only C

Only A

Capital gains from all types of mutual funds are taxed subject to certain conditions

19 / 50

In whose beneficial interest is a mutual fund managed?

Trustees

Unit holders

AMFI is an industry body, but not a self-regulatory organization - True or False ?

False

True

21 / 50

The loss booked from a debt investment of 15 months can be set off against ________

Long term capital loss

Short term capital loss

Short term capital gain or long term capital gain

It cannot be set-off

22 / 50

Whose KYC needs to be completed in case of an application by a minor?

The minor

The guardian

No KYC is required in case of applications by minors

Any family member of the minor

23 / 50

What is the maximum Total Expense Ratio chargeable in case of index funds?

It depends as the TER changes in line with the size of the scheme

Any amount that the AMC may deem appropriate

1 percent of the daily net assets

1.5 percent of the daily net assets

24 / 50

Which of these statements are false? A) While evaluating schemes, the Expense Ratio will matter much more in Debt Funds than Equity mutual funds. B) A mutual fund with a long track record is always better for investments as it would give higher returns in the future C) Ultra short term debt funds always invest in high credit quality debt securities

A and B are false

B and C are false

A and C are false

All A, B and C are false

25 / 50

Which of these is a physical asset?

Gold futures Real estate fund

Real estate fund

Real estate

Mortgaged backed securities

26 / 50

Ultra-short-term debt scheme invests in debt and money market instruments with Macaulay duration between __________ .

1 to 3 months

3 to 6 months

6 to 12 months

1 year to 3 years

27 / 50

The expenses which can be charged by an Asset Management Company to a Mutual Fund scheme are limited by _____ .

Fund Managers

A mutual fund scheme’s NAV is said to be cum-dividend from the ________ .

date the dividend is announced till it is paid out

date the dividend is paid

date unit holders approve the dividend

date of notice of meeting

29 / 50

What is the portfolio of a 'Fund of Funds' made up of ?

Money market securities

Equity stocks

Debt securities

Mutual Fund schemes

30 / 50

Identify the TRUE statement.

While calculating scheme returns for an investor, if there is an entry load, then the initial value of the Net Asset Value (NAV) is taken as NAV minus Entry Load

While calculating scheme returns for an investor, if there is an exit load, then the later value of the Net Asset Value (NAV) is taken as NAV minus Exit Load

31 / 50

.
Identify the TRUE statements - A) A mutual fund scheme with a beta of less than 1 is less risky than market B) The diversified stock index has a Beta of 1 C) Unsystematic risk is measured by its Beta

Only A is true

B and C are True

A and B are True

All A, B and C are True

32 / 50

The New Fund Offer dates are published in the _______ .

Both Key Information Memorandum and Scheme Information Document

Statement of Additional Information (SAI)

Key Information Memorandum (KIM)

Scheme Information Document (SID)

33 / 50

Which of the below statements is a important advantage of a Exchange Traded Fund (ETF)?

A person can closely track the current valuation of an ETF and buy/sell the units on a stock exchange at those prices

ETFs generally give higher returns than other Mutual Funds

An investor in an ETF can have a control on where his money can be invested

All of the above

34 / 50

As per AMFI’s code of ethics, an Asset Management Company has to disclose which of the following scheme related information to the unit holders? A. Investment Pattern B. Annual portfolio turnover C. Annual securities transactions.

Only B

A and B

B and C

A, B and C

35 / 50

In which of these options can an investor expect a cash flow in his bank account?

Bonus

Dividend Payout

Dividend Reinvestment

Growth

36 / 50

Which statement is FALSE with reference to risk appetite?

Risk appetite can be assessed by risk profiling

Preferred risk appetite is different from ideal risk appetite

Risk appetite indicates level of risk that investor is comfortable with

People of same age will have same risk appetite

37 / 50

If an investor wants to get updated monthly performance and portfolio data on mutual funds, which of the following documents should he read ?

Scheme Information Document (SID)

Fund Fact Sheet

Key Information Memorandum (KIM)

Statement of Additional Information (SAI)

38 / 50

For how long is the trail commission paid to the mutual fund distributor?

For the first one year only

For the first three years only

For the first ten years only

Till the money is held in the fund

39 / 50

Identify the TRUE statements -

Rolling return are the average annualized returns calculated for alternate holding period

Holding period returns (HPR) do not provide an accurate picture of returns of fund if its initial v

Both 1 and 2

None of the above

40 / 50

Which of these funds has the highest risk ?

Gilt funds

Index funds

Money market funds

Sector funds

41 / 50

The opening of time stamping machine needs to be documented and reported to _______ .

What is negative Alpha?

It is indicative of out performance by the fund manager

It is indicative of under-performance by the fund manager

It is indicative of over-hedging by the fund manager

It is indicative of under-hedging by the fund manager

43 / 50

Securities and Exchange Board of India (SEBI) functions does not include which of the following?

Regulation of Stock Exchanges

Enforcing compliance of its regulations

Making regulations for the Mutual Fund industry

Approving the fund managers which have been appointed by the AMC

44 / 50

_____ is not a fair selling practice by a mutual fund distributor.

Informing the investor of the various investment options

Carefully understanding the clients financial needs

Encouraging the churning of investments

45 / 50

An investor in India is investing in US Dollar based funds. He/She will benefit when ______.

The US Dollar becomes weaker

The US Dollar becomes stronger

The US Dollar reamins steady

46 / 50

How is the redemption transaction of a mutual fund priced?

NAV plus exit load

NAV minus exit load

NAV plus entry load

NAV minus entry load

47 / 50

Investments are carried at ________ in a mutual fund portfolio.

Market Value

Face Value

Book Value

Cost Value

48 / 50

Identify the TRUE statement with respect to 'Tracking Error'. A) Tracking error is calculated as the standard deviation of the excess returns generated by the fund B) While comparing different index funds, one should invest in a fund with high tracking error.

Only A is true

Only B is true

Both A and B are true

49 / 50

Identify the TRUE statement. A) While calculating scheme returns for an investor, if there is an entry load, then the initial value of the Net Asset Value (NAV) is taken as NAV plus Entry Load B) While calculating scheme returns for an investor, if there is an exit load, then the later value of the Net Asset Value (NAV) is taken as NAV plus Exit Load

Only A

Only B

Both A and B

50 / 50

What is asset allocation?

Deciding which and how many mutual fund schemes to invest in

Finalizing which mutual fund schemes would deliver the highest returns in future

Deciding how to invest money across various asset categories in line with one’s risk profile, financial objectives and current situation

Deciding which asset category would outperform the others and investing in it

Your score is

The average score is 69%

This Mock Test 9 will help you become familiar with the exam format, assess your knowledge, and identify areas that may need further study.

Remember that while mock tests can benefit practice, it’s important to understand the concepts and principles behind each question thoroughly.

Good Luck with your preparation for the NISM Series V-A Mutual Fund Distributor Exam!

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For the latest and most accurate information, please visit the NISM website at https://certifications.nism.ac.in/nismaol/

To whom does the profits or losses made by the mutual fund belong?

As per SEBI regulations, a mutual fund scheme should have at least ________ investors.

What action has to be taken before deleting a default bank account from the registered bank account in a mutaul fund folio?

The Asset Management Companies have to disclose the Total Expense Ratios (TER) of the various schemes on their websites on a ______ basis.

Financial goals have to be defined in terms of _______ .

If the sale and purchase transactions for a year amounted to Rs. 10,000 crore, and the average size of net assets is Rs. 5,000 crore, this means that investments are held in the portfolio, on an average for ________ .

Investors tend to extrapolate the current event into the future and expect a repeat. This is an example of ________ bias.

________ is a proper benchmark for a balanced hybrid scheme.

Long Duration debt scheme invests in debt instruments with Macaulay duration _____ .

When the asset allocation is maintained as a constant ratio by regular rebalancing of portfolio, it is known as ________ .

For which of these documents is Time Stamping mandatory?

Segregated portfolio means _________ .

What is the purpose of ‘credit enhancement’ in case of securitised transaction?

Banks and NBFC's can lend money against ________ of mutual fund units.

Whom should the investor approach if his complaint is not resolved by the Asset Management Company (AMC)?

Inflation Risk is also referred as _______.

Which of these statement(s) is/are FALSE?

Long term capital gains is NOT taxed in which of these funds? A. Balanced Advantage Funds B. Balanced Funds C. Diversified Equity Funds

In whose beneficial interest is a mutual fund managed?

AMFI is an industry body, but not a self-regulatory organization - True or False ?

The loss booked from a debt investment of 15 months can be set off against ________

Whose KYC needs to be completed in case of an application by a minor?

What is the maximum Total Expense Ratio chargeable in case of index funds?

Which of these is a physical asset?

Ultra-short-term debt scheme invests in debt and money market instruments with Macaulay duration between __________ .

The expenses which can be charged by an Asset Management Company to a Mutual Fund scheme are limited by _____ .

A mutual fund scheme’s NAV is said to be cum-dividend from the ________ .

What is the portfolio of a 'Fund of Funds' made up of ?

Identify the TRUE statement.

.Identify the TRUE statements - A) A mutual fund scheme with a beta of less than 1 is less risky than market B) The diversified stock index has a Beta of 1 C) Unsystematic risk is measured by its Beta

The New Fund Offer dates are published in the _______ .

Which of the below statements is a important advantage of a Exchange Traded Fund (ETF)?

As per AMFI’s code of ethics, an Asset Management Company has to disclose which of the following scheme related information to the unit holders? A. Investment Pattern B. Annual portfolio turnover C. Annual securities transactions.

In which of these options can an investor expect a cash flow in his bank account?

Which statement is FALSE with reference to risk appetite?

If an investor wants to get updated monthly performance and portfolio data on mutual funds, which of the following documents should he read ?

For how long is the trail commission paid to the mutual fund distributor?

Identify the TRUE statements -

Which of these funds has the highest risk ?

The opening of time stamping machine needs to be documented and reported to _______ .

What is negative Alpha?

Securities and Exchange Board of India (SEBI) functions does not include which of the following?

_____ is not a fair selling practice by a mutual fund distributor.

An investor in India is investing in US Dollar based funds. He/She will benefit when ______.

How is the redemption transaction of a mutual fund priced?

Investments are carried at ________ in a mutual fund portfolio.

Identify the TRUE statement with respect to 'Tracking Error'. A) Tracking error is calculated as the standard deviation of the excess returns generated by the fund B) While comparing different index funds, one should invest in a fund with high tracking error.

What is asset allocation?

Good Luck with your preparation for the NISM Series V-A Mutual Fund Distributor Exam!

Mock Test 1 | Mock Test 2 | Mock Test 3 | Mock Test 4 | Mock Test 5 | Mock Test 6 | Mock Test 7 | Mock Test 8 | Mock Test 9 | Mock Test 10

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Identify the TRUE statements - A) A mutual fund scheme with a beta of less than 1 is less risky than market B) The diversified stock index has a Beta of 1 C) Unsystematic risk is measured by its Beta