Feel Real Exam 6- NISM-Series-V-A: Mutual Fund Distributors Certification

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

Feel Real Exam 6- NISM-Series-V-A: Mutual Fund Distributors Certification

The number of attempts remaining is 10

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

2 / 100

2. Which amongst the following is a measure of risk-adjusted returns of a mutual fund scheme?

3 / 100

3. Mutual funds are allowed to charge differential exit loads based on the amount of investment.

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

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5. A mutual fund has the policy of imposing an exit load of 2% for redemption up to one year and 1% for redemptions beyond one year. If an investor redeems 2000 units at an NAV of Rs 40 at the end of six months from the date of investment, what will be the redemption amount receivable by the investor?

6 / 100

6. Stamp duty is required to be paid for which of these mutual fund transactions? A) New purchases B) Systematic Investment Plan (SIP) C) Dividend reinvestment D) Systematic Transfer Plan (STP)

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7. Which of the following scheme categories would be considered the least risky in terms of credit risk?

8 / 100

8. Redemption from which of the following mutual fund schemes would attract Securities Transaction Tax (STT) for an investor?

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9. Which among the following schemes would have a lower risk of concentration?

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10. Passive funds are safe, as the NAV of such funds do not go down even when the respective markets fall. State whether this is True or False.

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11. What is the real rate of return?

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12. In whose beneficial interest is a mutual fund managed?

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13. How often should the Key Information Memorandum (KIM) be updated?

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

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15. Which of the following statements is ‘True’ with respect to celebrity endorsement for mutual funds?

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16. Unsystematic risk can be reduced through diversification. State whether True or False.

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

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18. Which of these is a physical asset?

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

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20. When an investment is done by a minor, what is rule regarding Know Your Customer (KYC) requirement?

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21. What is negative Alpha?

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22. What term is used to describe the Net Asset Value (NAV) of the scheme after the dividend is paid out (Remember the NAV would have dropped to the extent of the dividend paid)?

23 / 100

23. What minimum percentage of the mutual fund scheme corpus must be invested in equity and related instruments in the case of Equity Linked Savings Schemes (ELSS)?

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24. Each mutual fund scheme must have a stated investment objective. State whether True or False.

25 / 100

25. Which of the following cannot be considered for the purpose of selecting a scheme’s benchmark?

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

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27. Which of the following is an advantage of mutual funds?

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28. In the non-equity-oriented funds, the rate of long-term capital gains tax is

29 / 100

29. Investors have the right to specify up to ________ nominees for their mutual fund investment folios.

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30. Which of the following statements is True?

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31. 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

32 / 100

32. An investor invested in scheme A when the scheme’s NAV was Rs. 120 per unit. The investor redeemed the investments at the NAV of Rs. 135. Calculate the simple return.

33 / 100

33. Government securities can be considered to be completely risk-free. State whether True or False.

34 / 100

34. _______ is not a fair selling practice by a mutual fund distributor.

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35. In an Arbitrage fund, the minimum investment in equity and equity related instruments shall be ______ of total assets.

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

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37. By mistake the ARN number is wrongly mentioned in the application form. How will such an application be processed?

38 / 100

38. The purchasing power of currency changes on account of which of the following?

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39. What is the investment of a constant amount at regular intervals in a mutual fund scheme called?

40 / 100

40. For which of these documents is Time Stamping mandatory?

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41. Segregated portfolio means _________ .

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42. ______ are close-ended debt funds.

43 / 100

43. Inflation Risk is also referred as

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44. are close-ended debt funds.

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45. ‘Once it is finalized, a mutual fund scheme’s benchmark cannot be changed at a later date.’ State whether the statement is True or False.

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46. Which of the following regulates mutual funds in India?

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

48 / 100

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

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49. Banks and NBFCs can lend money against ________ of mutual fund units.

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50. What is the tax applicable on the income earned by the mutual fund schemes?

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51. The transparency levels in mutual funds are very low. State whether True or False.

52 / 100

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

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53. Passive funds are safe, as the NAV of such funds do not go down even when the respective markets fall. State whether this is True or False.

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54. In what form do mutual fund distributors earn revenue?

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55. Which strategy can be used to ensure that a mutual fund scheme is suitable to the investor’s need and situation?

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56. Whose job is it to track the various corporate actions like a bonus, dividend, or rights issues in companies where the mutual fund scheme has invested?

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57. Which of the following statements is ‘TRUE’ with respect to the Scheme Information Document (SID) and Statement of Additional Information (SAI)?

58 / 100

58. Which among the following schemes would have a lower risk of concentration?

59 / 100

59. For KYC verification, ________ is not accepted as a photo identity documentation for Micro SIP’s.

60 / 100

60. The Income Tax Act allows setting-off of the short-term capital loss against long term capital gains. State whether True or False.

61 / 100

61. As per the fair valuation principles laid out by SEBI, it is mandatory to disclose the valuation policy in

62 / 100

62. The average net assets of a fund were Rs 800 crore and the investment transactions of the fund were Rs 1600 crore. Calculate the Portfolio Turnover Ratio.

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

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64. Mutual fund distributors earn no commission when the investor chooses to invest in “direct” plans. State whether True or False.

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65. 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

66 / 100

66. Which among the following is not a statutory document?

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67. Only individuals are allowed to distribute mutual funds in India. State whether True or False.

68 / 100

68. “Please read the scheme related documents carefully” – which documents does this line refer to?

69 / 100

69. Which of these statement(s) is/are FALSE with respect to Benchmarks?

A) Portfolio concentration is an important factor while selecting a benchmark for an equity mutual fund B) Choice of investment universe is not an important factor while selecting an appropriate benchmark for debt mutual funds

70 / 100

70. Mutual fund distributors can only earn upfront commission from the mutual funds. State whether True or False.

71 / 100

71. How many (maximum) bank accounts can a resident individual investor register with a mutual fund folio?

72 / 100

72. ________ is a proper benchmark for a balanced hybrid scheme.

73 / 100

73. Which of the following scheme categories would be considered the least risky in terms of credit risk?

74 / 100

74. Which of the following is a measure of fluctuation in periodic returns in an equity mutual fund scheme?

75 / 100

75. At what price are the bonus units issued to the unitholder?

76 / 100

76. Which of these funds has the highest risk?

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77. In case of mutual fund schemes, dividends can be paid only out of

78 / 100

78. Investors have bought 20 crore units of a mutual fund scheme at Rs. 10 each. The scheme has thus mobilized 20 crore units X Rs. 10 per unit i.e., Rs 200 crore. An amount of Rs. 140 crore is invested in equities. The balance amount of Rs 60 crore, mobilized from investors, was placed in bank deposits. Interest and dividend receivable (accrued but yet not received) by the scheme is Rs 8 crore, scheme expenses payable (accrued but not paid yet) is Rs 4 crore. Calculate the scheme’s NAV per unit.

79 / 100

79. What is the purpose of ‘credit enhancement’ in case of securitized transactions?

80 / 100

80. Who handles the day-to-day management of the mutual fund?

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81. What is the portfolio of a ‘Fund of Funds’ made up of?

82 / 100

82. What is asset allocation?

83 / 100

83. Which is the most appropriate measure of evaluating how closely an index fund is tracking its benchmark?

84 / 100

84. Mutual funds are constituted as ‘Trusts’ in India. Who are the beneficiaries of the trust?

85 / 100

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

86 / 100

86. Calculate the Treynor Ratio from the following data: Return from a mutual fund scheme is 7.5%. The beta is 0.62. The risk-free rate of return is 6%.

87 / 100

87. When the interest rate in the economy increases, the price of existing bonds

88 / 100

88. Once a New Fund Offer closes, an open-ended mutual fund is open for purchases ________.

89 / 100

89. takes into account all dividends generated from the basket of constituents that make up the index in addition to the capital gains.

90 / 100

90. Which amongst the following categories of mutual funds have a fixed maturity date?

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91. For an investor to get a quick sense of the level of risk involved in a mutual fund scheme, SEBI suggested a simplified framework known as

92 / 100

92. As per the SEBI guidelines, how often should the mutual fund scheme’s portfolio be published?

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93. In case of capital gains from mutual fund investments, Tax Deduction at Source (TDS) is applicable for:

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94. Mutual Fund Distributors Certification Examination offered by is required for becoming a mutual fund distributor.

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95. With which agency are the mutual fund distributors registered?

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

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97. Which of the following types of analysis tracks the price and volume data related to trading in the security?

98 / 100

98. Mutual funds can buy and sell securities only on a delivery basis. State whether this statement is True or False.

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99. For an investor to get a quick sense of the level of risk involved in a mutual fund scheme, SEBI suggested a simplified framework known as

100 / 100

100. Registrar and Transfer Agency function must be independent of the Asset Management Company, and it cannot be retained in-house. State whether this statement is True or False.

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