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NISM-Series-V-A: Mutual Fund Distributors Certification

Feel Real Exam 4- NISM-Series-V-A: Mutual Fund Distributors Certification

The number of attempts remaining is 10

1 / 100

1. Mr. Surendra has chosen to invest in a mutual fund scheme with monthly income distribution cum capital withdrawal plan (IDCW). However, he must remember that ______ .

2 / 100

2. Mr. X invests in a liquid fund at 4 pm, and the funds are not available for investments the same day. What will be the applicable NAV in this case for allotment of units?

3 / 100

3. Why does SEBI have regulations pertaining to restrictions on the investment policies of mutual fund schemes?

4 / 100

4. In a mutual fund, the investment decisions on investing the investors' funds are taken by ________.

5 / 100

5. A company wishes to invest in a specific scheme of a Mutual Fund. Which document authorizes it to do so?

6 / 100

6. Indentify which of these statements is/are FALSE?
A) Banks and mutual funds both offer the Gold Deposit Scheme
B) Gold ETFs are closed-ended funds

7 / 100

7. A summary of the scheme-related information documents is found in the _____.

8 / 100

8. Which of these form a part 'Fit and Proper' criteria for eligible distributors which an AMC should check before empaneling a distributor?

9 / 100

9. The functions of a Registrar and Transfer Agent can be performed in-house by an Asset Management Company - State whether True or False?

10 / 100

10. Mutual funds have to follow the regulations of the Reserve Bank of India (RBI) for investments in _______.

11 / 100

11. Which debt schemes of mutual funds invest only in debt securities where moneys will be repaid within 91 days?

12 / 100

12. When a bank fixed deposit is closed prematurely, there will be a penalty charged for that - State True or False?

13 / 100

13. A folio which is held by a _______ CANNOT have a nominee.

14 / 100

14. Mr. Shah gives a local cheque of Rs. 30 lacs at 2.30 pm for investment in an Equity Scheme. Which will be the applicable NAV for the allotment of units to Mr. Shah?

15 / 100

15. The current market value of the stocks of a Mutual Fund scheme portfolio is Rs 12 crore, and the current liabilities are Rs 7 crore. The unit capital is Rs 10 crore, and the face value per unit is Rs 10. What is the current NAV of this scheme?

16 / 100

16. No investor can have a holding of more than 20 percent of a scheme - State True or False?

17 / 100

17. For investments in Equity Linked Saving Scheme (ELSS), the lock-in for the entire amount would NOT get over on completion of 3 years from the date of the first SIP installment - State whether True or False?

18 / 100

18. There are various risk profiling tools available on the internet. A financial planner can use any of these as risk profiling is just a process.

19 / 100

19. Identify the correct statement with respect to the top-performing scheme within a category.

20 / 100

20. The full form of AGNI is ________.

21 / 100

21. Within how many working days should the AMC send the Statement of Account of the initial transaction for a Systematic Transfer Plan (STP)

22 / 100

22. A company has an Earning Per Share (EPS) of Rs 5 and a Price to Earning (PE) ratio of 30. What will be the market price of the shares of this company?

23 / 100

23. The appropriate benchmark for a short-term debt scheme will be _______.

24 / 100

24. Which of these is a key advantage of Exchange Traded Funds (ETFs)?

25 / 100

25. The appropriate benchmark for a mutual fund scheme investing across many countries would always be an index based on US equity markets.

26 / 100

26. Commodities as an asset class do not include _________.

27 / 100

27. Identify the mutual fund folios which cannot make a nomination?

28 / 100

28. Which of these is NOT a function of SEBI?

29 / 100

29. The Net Asset Value (NAV) that is applicable for processing a mutual fund transaction depends on ________.

30 / 100

30. For a value fund, the minimum investment in equity and equity-related instruments of the total assets is ____ .

31 / 100

31. ______ are responsible for the implementation of uniform KYC.

32 / 100

32. Can Indian mutual funds invest in Real Estate?

33 / 100

33. The condensed financial information about all the mutual fund schemes launched by the AMC in the last 3 years is provided in the Fund Factsheet.

34 / 100

34. What is the 'Goal-Based approach to Financial Planning' focused on?

35 / 100

35. Mohit needs Rs. 2,00,000 in 5 years from now. The interest rate is 7%. The amount required today to be invested can be calculated by using the formula ______ .

36 / 100

36. The returns published in a mutual fund advertisement would be without factoring the entry or exit load.

37 / 100

37. _______ indicates how much money can be generated per unit of the mutual fund in case the scheme is liquidated.

38 / 100

38. An Indian investor in a US Dollar based fund will benefit if US Dollar weakens against the Indian Rupee. (Assuming other things remain the same) - State True or False?

39 / 100

39. Identify the INCORRECT statement with respect to SEBI Complaint Redress System (SCORES).

40 / 100

40. The facility of Application Supported by Blocked Amount (ASBA) can be used for ______ .

41 / 100

41. Statement of Additional Information (SAI) has to be regularly updated, and the updation has to be done by the end of 3 months every financial year - State whether True or False?

42 / 100

42. Securities transaction Tax (STT) is applicable on redemption of both Equity mutual funds and Debt mutual funds - State whether True or False?

43 / 100

43. Statement of Additional Information' (SAI) contains information which is _____.

44 / 100

44. Who issues the 'Certificate of Deposit'?

45 / 100

45. A Trail Commission is paid _______.

46 / 100

46. A Segregated Portfolio can be created out of a debt fund scheme when _________.

47 / 100

47. What is the tax applicable to the AMC for the income earned by the mutual fund schemes?

48 / 100

48. Which of these are considered as Institutional groups of investors?

49 / 100

49. Tactical Asset Allocation decisions are based on which of these factors?

50 / 100

50. Which exam has to be cleared to get the Employee Unique Identification Number (EUIN) from AMFI?

51 / 100

51. The interest rate sensitivity of a bond is determined by its maturity - State whether True or False?

52 / 100

52. According to the SEBI Advertisement Guidelines for Mutual Funds, when a mutual fund scheme has been in existence for more than three years, point-to-point returns on a standard investment of Rs.10,000 should be shown in addition to the Compounded Annual Growth Rate (CAGR) for the scheme to provide ease of understanding to retail investors. This helps investors gauge the performance of the scheme over a specific investment period. Hence, the correct answer is "True."

53 / 100

53. The sponsor needs to contribute a minimum _____ of the net worth of the AMC.

54 / 100

54. No redemption or subscription is allowed in a Segregated Portfolio - State whether True or False?

55 / 100

55. There is no risk associated with stock lending as the transaction is done through an approved intermediary - State True or False?

56 / 100

56. The debt mutual fund categories mentioned—Liquid Funds, Money Market Funds, and Medium Term Bond Funds—have been arranged from lowest risk to highest risk. The risk being discussed here is the Interest Rate Risk. Interest rate risk refers to the risk of changes in interest rates affecting the value of fixed-income investments. In this context, as the investment duration increases, the sensitivity to changes in interest rates also increases. Therefore, the correct answer is "Interest Rate Risk."

57 / 100

57. The performance data for all schemes across the mutual fund industry is available on ______.

58 / 100

58. Identify which of the following statements is/are false in the context of benchmarks.

59 / 100

59. While giving the mutual fund units for re-purchase, the distributor should consider the impact of ______ and ______ on the investor's portfolio.

60 / 100

60. _______ gives the investor exposure to international assets.

61 / 100

61. SEBI Complaint Redress System (SCORES) helps an investor to ______ . 1. Lodge a complaint for a grievance 2. Make a follow-up on the complaint 3. Track the status of redressal of such complaints online

62 / 100

62. With respect to KIM - Key Information Memorandum, which of the following statements is NOT true?

63 / 100

63. For a VALUE FUND, the minimum investment in equity and equity-related instruments is 50% of the total assets. State whether True or False?

64 / 100

64. A Floating interest rate is _______ .

65 / 100

65. When an investor has to change their default bank account with a mutual fund, they have to inform the KYC registration agency for the same.

66 / 100

66. Association of Mutual Funds in India (AMFI) conducts the certification examination for Mutual Fund distributors.

67 / 100

67. Which is the most important factor for comparing the performance of liquid funds?

68 / 100

68. The market value of a mutual fund scheme's portfolio is Rs. 15 crores. Its current liabilities are Rs. 2 crore. The unit capital is Rs. 10 crore, and the face value per unit is Rs. 10. Calculate the NAV per unit?

69 / 100

69. Identify which of these is NOT a function of Association of Mutual Funds in India (AMFI)?

70 / 100

70. The investment management and advisory fee that an AMC can recover on unclaimed amounts in schemes is at a maximum rate of ______ per annum.

71 / 100

71. The facility to invest in cash up to Rs. 50,000 is NOT available to ______ .

72 / 100

72. In which of the following options does an investor receive the dividend declared by the mutual fund scheme in their bank account?

73 / 100

73. The first Account Statement under SIP/STP shall be issued within 10 working days of the initial investment/transfer - State whether True or False?

74 / 100

74. In case of segregated portfolios, when is the NAV need to be disclosed?

75 / 100

75. Which of these expenses can be charged to a mutual fund scheme by the AMC?

76 / 100

76. An investor in a debt-oriented mutual fund receives the benefit of ______ on long-term capital gains.

A) Indexation
B) Tax exemption

77 / 100

77. Diversified equity funds are less risky compared to Thematic funds in terms of _______ risk.

78 / 100

78. Identify the FALSE statement/s : 1. For equity mutual funds schemes which are actively managed (eg. Diversified equity fund/Balance funds), the net asset value need NOT be declared up to 4 decimal points 2. Each mutual fund scheme’s account is combined with the accounts of the Asset Management Company.

79 / 100

79. Investments owned by the scheme may be quoted in the market at higher than the cost paid. Such gains in values on securities held are called _______.

80 / 100

80. An investor who has a long-term view and is looking for capital appreciation and also has a high risk tolerance should opt for investments in ________.

81 / 100

81. After the New Fund Offer, units of the Closed-Ended fund can be bought and sold through _______.

82 / 100

82. Which of the below documents can be inspected by the unit holder?

83 / 100

83. The appropriate benchmark for debt Schemes having duration / maturity of more than 1 year will be _____ .

84 / 100

84. Management of investments by mutual funds is governed by Association of Mutual Funds in India (AMFI) - State whether True or False?

85 / 100

85. If an investor in a Multicap Fund wants to know the industry-wise allocation of the funds, then which document should he refer to?

86 / 100

86. With respect to financial goals, longer time horizon ________ the investor’s ability to take high risk.

87 / 100

87. What is the investment range in debt instruments by a Conservative Hybrid fund?

88 / 100

88. The credit rating of a bond migrates from AAA to AA+. Determine what will the impact of this migration be on the market price of the bond?

89 / 100

89. Typically, towards the maturity of the close-end scheme, the market price converges towards the NAV - State whether True or False?

90 / 100

90. The unaudited accounts of the Mutual Fund schemes must be published once in every six months _______ .

91 / 100

91. A person wishes to avail of a loan. For which of the below options, can they not get a loan?

92 / 100

92. The transactions in securities by key personnel of the mutual fund who are directly involved in investment operations of mutual fund schemes should be disclosed by the AMC to its compliance officer ______ basis

93 / 100

93. Usually most investors might have invested across various asset categories. However the problem with such asset allocation is that __________ .

94 / 100

94. The main purpose why SEBI has issued norms for investments by mutual fund schemes is to _________ .

95 / 100

95. Identify the FALSE statement : 1. The investor does not have to bear a tax on the capital gains as the re-purchase of units is done by the mutual fund 2. Capital gains will be considered as Long term capital gain in case of debt funds only if the holding period is more than 3 years

96 / 100

96. Stock Picking' approach is similar to _______ .

97 / 100

97. What is the Total Expense Ratio for an Index fund or an ETF?

98 / 100

98. ______ is an example of physical asset.

99 / 100

99. Identify the CORRECT statement/s. A. Valuation gains are ignored. But valuation losses need to be adjusted against the profits while calculating distributable surplus. B. The Mark-to-market gains form a part of the distributable reserves in case of mutual fund Income Distribution Cum Capital Withdrawal plan.

100 / 100

100. _____ is certainly not suitable for investors who need the money in the short term.

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