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

Feel Real Exam 5- NISM-Series-V-A: Mutual Fund Distributors Certification

The number of attempts remaining is 10

1 / 100

1. In which of the following case can a mutual fund charge the additional expense of 0.30 % of daily net assets of the scheme?

2 / 100

2. Calculate the Average holding period if the portfolio turnover ratio is 25 percent.

3 / 100

3. Usually, most investors might have invested across various asset categories. However, the problem with such asset allocation is that _______ .

4 / 100

4. Investments have to be made only through authorized signatories for investments by _______.

5 / 100

5. The compliance requirements under the Foreign Account Tax Compliance Act (FATCA) apply only to mutual funds and not to other financial institutions - State whether True or False?

6 / 100

6. In the case of a Sectoral Fund, the minimum investment in equity and equity-related instruments of a particular sector of total assets should be _____.

7 / 100

7. Identify the TRUE statement/s. 1. The market liquidity can get impacted due to market-related events and company factors 2. There cannot be a price impact on mutual fund units due to liquidity demands due to redemption or portfolio rebalancing

8 / 100

8. The ARN is allotted to the mutual fund distributors by ______ .

9 / 100

9. Identify the TRUE statement with respect to 'Jensen's Alpha' of a mutual fund scheme?

10 / 100

10. Which is the Source Scheme in a Systematic Transfer Plan?

11 / 100

11. What is the maximum percentage of holding a single investor can have in a mutual fund scheme?

12 / 100

12. ________ ensures that the information contained in the scheme-related documents (SID and SAI) is fully complied with.

13 / 100

13. The additional Total Expense Ratio (TER) charged has to be credited back to the Mutual Fund in which of these situations?

14 / 100

14. Smita is a young investor, and her parents advise her to invest in fixed deposits of banks so that these funds can be used for her retirement. If Smita follows her parents' advice, what risk does she face?

15 / 100

15. _________ would not be an originator to a special purpose vehicle, in case of securitized asset.

16 / 100

16. Identify the FALSE statement(s) - A) For Index funds, the NAV is calculated up to 4 decimal points B) The AMC and a mutual fund scheme of the AMC can have the same auditor

17 / 100

17. In a Contra Fund, the minimum investment in equity & equity-related instruments shall be ________ of total assets.

18 / 100

18. Identify the TRUE statement/s with respect to the risks associated with short selling and stock lending.

1. There is counterparty risk and liquidity risk in short selling
2. There is no risk associated with stock lending as the transaction is done through an approved intermediary

19 / 100

19. Which of the following is INCORRECT with respect to advertisements of Mutual Funds by AMCs?

20 / 100

20. Identify the false statement(s). A) When an investor wants to redeem from a scheme, the distributor must suggest redemption from the scheme with the maximum exit load B) The mutual fund distributors can ignore the impact of exit load at the time of repurchase

21 / 100

21. Identify the TRUE statements with respect to Transmission of mutual fund units - A) Before the transfer is effected, the mutual fund will insist on an indemnity against future problems for the mutual fund arising out of the transfer B) Before the transfer is effected, the mutual fund will not insist on the death certificate of the deceased unit-holder C) Before the transfer is effected, the mutual fund will insist on the KYC documentation from the nominee

22 / 100

22. The return from a fund is 9%, Standard Deviation is 0.75, and the Beta is 1.4. The risk-free rate of return is 7%. What is the DENOMINATOR in the calculation of the Sharpe Ratio?

23 / 100

23. 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 minus Entry Load B) While calculatingscheme 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

24 / 100

24. An investor is interested in buying some units of a Close-ended fund after the NFO is over. How can he buy the same?

25 / 100

25. ______ is the most relevant factor for comparing the performance of liquid funds of similar category offered by various mutual fund houses.

26 / 100

26. The NAV of an equity fund is Rs. 76.45, and the face value is Rs. 10. An investor invests Rs 30,000. How many units will be allotted to him? (There is no entry load)

27 / 100

27. Identify the False statement/s. A. Investments in mutual funds can be made on a repatriable basis by NRIs B. The mutual fund will automatically pay in Dollars when the NRI redeems his investments which were made on a repatriable basis

28 / 100

28. In case one of the joint holders dies, the units will ________ .

29 / 100

29. ________ is not a mutual fund distribution channel.

30 / 100

30. According to guidelines given by SEBI, every mutual fund scheme should have a minimum of ____ investors.

31 / 100

31. The expenses of _______ cannot be charged to a mutual fund scheme.

32 / 100

32. If a mutual fund enters into a transaction for the purchase or sale of securities with any of its associates, then the members of the Asset Management Company of the mutual fund have to ________ .

33 / 100

33. These debt mutual funds have been arranged from lowest risk to highest risk. Identify the risk which we are discussing : 1. Liquid Funds 2. Money market funds 3. Medium term bond funds

34 / 100

34. The trustees of a mutual fund are appointed by the ______ .

35 / 100

35. 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

36 / 100

36. Some of the costs incurred by the Asset Management Companies to manage the mutual fund schemes can be charged to _________ in proportion to their holding of units in the scheme.

37 / 100

37. AMFI Code of Ethics states that _______ cannot become a distributor of mutual funds.

38 / 100

38. When can mutual funds charge an additional expense of 0.30% of daily net assets of the scheme?

39 / 100

39. Which of these statements are TRUE with respect to time stamping on mutual fund documents? A) Time stamping is relevant for non-financial mutual fund transactions B) The daily time stamping of application does not start with serial 1 C) Breakdown of time stamping process or breaking of seal is mandated to be duly recorded and reported to the Trustees

40 / 100

40. From the below-mentioned entities associated with a mutual fund, who has to mandatorily contribute to the corpus of the mutual fund?

41 / 100

41. In which of the following cases can Goods and Service Tax (GST) be charged to the mutual fund scheme over and above the Total Expense Ratio of the scheme?

42 / 100

42. On what basis will the payment be made to an investor who claims his erstwhile unclaimed redemption amount within three years?

43 / 100

43. A mutual fund scheme's performance must always be measured relative to the _____ .

44 / 100

44. Identify the FALSE statement. 1. Arbitrage funds can invest in both Futures/Options (F&O) and cash markets 2. The only objective of an Arbitrage fund is to provide capital appreciation 3. Arbitrage funds have lower risk compared to Equity Funds

45 / 100

45. Not more than 25% of the Net Assets will be invested in the Derivatives Market' - This statement best describes the ________ of the mutual fund scheme.

46 / 100

46. Identify the true statement with respect to investments in mutual funds through Stock Exchanges?

47 / 100

47. Once the mutual fund units are pledged, the unit holder/s _______ .

48 / 100

48. On whom is the compliance requirement under Foreign Account Tax Compliance Act (FATCA) applicable?

49 / 100

49. Investors who have not transacted during the previous ______ are known as dormant investors.

50 / 100

50. Where is the performance data for all schemes across the mutual fund industry available?

51 / 100

51. Who is NOT authorized to attest the documents submitted for Know Your Customer compliance, in case originals are not produced at the time of KYC?

52 / 100

52. Which of these entities can invest in Indian mutual funds? A) Foreign portfolio investor B) Insurance company C) Salaried individual

53 / 100

53. The return from a mutual fund scheme is 8.3% and the Standard Deviation is 0.6. The risk-free rate of return is 5%. Calculate the Sharpe ratio.

54 / 100

54. _______ is not included in the fundamental attributes of a mutual fund scheme.

55 / 100

55. Identify which of these is a function of Association of Mutual Funds in India's (AMFI).

56 / 100

56. When a mutual fund distributor empanels with an AMC, he/she has to sign a declaration for ______ .

57 / 100

57. Identify the TRUE statement(s) - A) A systematic transaction cannot be canceled B) Assuming a mutual fund scheme is profitable, then the investors can keep encashing some profits through a Systematic Withdrawal Plan

58 / 100

58. A top-performing scheme within a category ________.

59 / 100

59. Identify the true statement(s) with respect to the benchmark for Sector Funds. A) It's ideal to benchmark a sector fund against an index representing the respective sector B) It's advisable to benchmark a sector fund against a diversified fund to get the correct picture

60 / 100

60. Which of these investors CANNOT do CASH investments in mutual funds up to a limit of Rs. 50,000?

61 / 100

61. Which of these funds will generally have a higher fund management cost?

62 / 100

62. Ms Shweta purchases through a distributor 5000 units of a mutual fund scheme at a NAV of Rs 30. The current NAV of the scheme is Rs 28. What will be the trail commission for today if the trail commission rate is 1% per annum?

63 / 100

63. Which of these statements is true with respect to Key Information Memorandum (KIM)?

64 / 100

64. In which document is a commentary on the current state of the economy and markets is also generally provided?

65 / 100

65. The form for registering a change in the default bank account has to be signed _____ .

66 / 100

66. What is the disadvantage of company fixed deposits when compared to bank fixed deposits?

67 / 100

67. SEBI has regulations pertaining to restrictions on the investment policies of mutual fund schemes for ensuring that _____ .

68 / 100

68. Long-term capital loss from an investment can be set off against _____ .

69 / 100

69. How can the empanelment of a mutual fund distributor be terminated?

70 / 100

70. Rising Sun Mutual Fund holds shares of AAA Ltd. in its portfolio. When the NAV of the scheme is calculated on 10th April, then each share of AAA Ltd. will be valued at ______ .

71 / 100

71. Different investors of the similar age group should always have the same asset allocation in their investment portfolios - State whether True or False?

72 / 100

72. When does the market price of close-end mutual fund scheme converge with the NAV price?

73 / 100

73. Identify the information which is NOT included in the Statement of Additional Information (SAI).

74 / 100

74. Which of the following functions can an Asset Management Company (AMC) do in-house?

75 / 100

75. Identify the FALSE statement/s with respect to benchmarks for mutual fund schemes.

A) A Multi-Cap fund can have Nifty 500 index as its benchmark
B) A Multi-Cap fund can have BSE Sensex as its benchmark

76 / 100

76. The portfolio of a fund of funds consists of ______ .

77 / 100

77. An Asset Management Company (AMC) can recover investment management and advisory fees on the management of unclaimed amounts, ________.

78 / 100

78. Which of these pieces of information is not contained in the Scheme Information Document (SID)?

79 / 100

79. Identify the FALSE statement(s) - A - Authorized signatories have to sign the request for transactions of institutional investors in mutual funds B - Even if the Memorandum of Association and Articles of Association does not permit investment in mutual funds, the company can invest in mutual funds based on a Board Resolution

80 / 100

80. The minimum number of investors that a mutual fund scheme should have:

81 / 100

81. Ms. Apeksha invests Rs 2 crore in a Gilt scheme at 2 pm with a local cheque. What would be the applicable NAV for the allotment of units?

82 / 100

82. Redemption proceeds have to be paid to the mutual fund unit holders within the time specified by _____ from time to time.

83 / 100

83. Which of these statement(s) is/are TRUE? A) If the mutual fund units are held in demat form, they cannot be converted into physical form B) When a mutual fund is redeemed or when there is a dividend pay-out, the amount will be credited to the bank account linked to the demat account for those mutual fund investors who opt for demat units

84 / 100

84. Opening of a time-stamping machine needs to be documented and reported to the Asset Management Company (AMC) - State whether True or False?

85 / 100

85. Identify the False statement/s. A) Valuation gains are ignored, but valuation losses need to be adjusted against the profits while calculating distributable surplus B) TheMark-to-market gains form a part of the distributable reserves in case of a mutual fund Income Distribution Cum Capital Withdrawal plan

86 / 100

86. How can the fundamental attributes of a mutual fund scheme be changed?

87 / 100

87. In the case of ________, the Net Asset Value has to be declared for up to 4 decimal points.

88 / 100

88. Amongst the distribution channels mentioned below, which one is likely to sell funds of only a single mutual fund house?

89 / 100

89. For a Sector Fund, the minimum investment in equity and equity-related instruments of a particular sector/theme shall be 90 percent of total assets. State whether True or False?

90 / 100

90. Mrs. Neeta needs Rs. 5,00,000 in 3 years from now. The interest rate is 6%. By which formula can we calculate the amount that is required to be invested today to achieve the goal?

91 / 100

91. Identify the factor that must be considered to determine the asset allocation for an investor.

92 / 100

92. Who uses the information collected under the Foreign Account Tax Compliance Act (FATCA)?

93 / 100

93. An investor purchases through a distributor 5000 units of a mutual fund scheme at an NAV of Rs 25. The current NAV of the scheme is Rs 43. What will be the trail commission for today if the trail commission rate is 1% per annum.

94 / 100

94. Mr. Mohit has filled up an application form for subscribing to a mutual fund scheme. However, the address mentioned in the application form is different from the address provided at the time of KYC compliance. Which address will be included in the mutual fund records once the KYC compliance is validated?

95 / 100

95. If an investor has to change his default account, he/she has to do it with ____ .

96 / 100

96. If an investor claims his unclaimed redemption amount after 3 years, the payment will be based on the ________.

97 / 100

97. Indicate which of these funds have the lowest to highest risk sequence? A) Liquid Fund B) Credit Risk Fund C) Corporate Bond Fund

98 / 100

98. An Addendum has to be issued for changes in ________.

99 / 100

99. What is required for the termination of the services of an Asset Management Company (AMC)?

100 / 100

100. Which document is used by fund rating agencies and also by investors to check the performance of various schemes of a mutual fund?

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