NISM Series V A Mutual Fund Distributors Exam Series - 12
NISM Series VA Mutual Fund Distributors Exam Series - 12
Q 1. How can investors address grievances with mutual fund companies?
A) By contacting the Securities and Exchange Board of India (SEBI) directly
B) By filing a lawsuit against the mutual fund company
C) By publishing their complaints on social media
D) By following the formal grievance redressal policy provided by the mutual fund company
E) None of the above
Q 2. Which regulator in India is responsible for regulating the pension market?
a) Reserve Bank of India (RBI)
b) Securities and Exchange Board of India (SEBI)
c) Insurance Regulatory and Development Authority of India (IRDAI)
d) Pension Fund Regulatory and Development Authority of India (PFRDA)
e) Ministry of Finance
Q 3. When should the annual report or abridged summary be hosted on the AMC's website?
a) Within one month from the close of each financial year
b) Within two months from the close of each financial year
c) Within three months from the close of each financial year
d) Within four months from the close of each financial year
e) Within six months from the close of each financial year
Q 4. What additional disclosures are required by Mutual Funds/AMCs regarding distributors' gross inflows?
a) Gross inflows only
b) Gross inflows and net inflows
c) Gross inflow and average assets under management
d) Gross inflows and the ratio of AUM to gross inflows
e) Gross inflows, net inflows, and average assets under management
Q 5. What role did individual agents play in the distribution of financial products for institutions like LIC and UTI?
a) Handling paperwork for financial products
b) Managing branch offices
c) Developing financial products
d) Conducting market research
e) Providing investment advice to clients
Q 6. What is the purpose of the Eighth Schedule of SEBI (Mutual Funds) Regulations, 1996?
a) To specify guidelines for fair valuation of mutual fund investments
b) To regulate the sale of mutual fund units to retail investors
c) To determine the eligibility criteria for mutual fund managers
d) To set the maximum expense ratio for mutual fund schemes
e) None of the above
Q 7. What is the lock-in period for Equity Linked Savings Schemes (ELSS) under Section 80C of the Income Tax Act?
a) 1 year
b) 2 years
c) 3 years
d) 5 years
e) 10 years
Q 8. How are scheme selections typically made?
a) Automatically by a mutual fund company
b) After making the application
c) By the distributor
d) At the time of redemption
e) Before making the application
Q 9. Under what circumstances would a reporting entity require a customer to submit documents again for KYC?
a) No circumstances, documents are never required to be resubmitted
b) When there's no change in customer information
c) When the customer's address needs to be verified
d) If the customer insists on resubmitting the documents
e) None of the above
Q 10. What is required to change the guardian in a minor's folio?
a) Only change form
b) Compliance with KYC and PAN requirements, bank account details, and a non-objection certificate from the existing guardian
c) Bank statement
d) Only a no-objection certificate from the new guardian
e) Only one change in PAN details
Q 11. What is the purpose of the Transfer of Income Distribution cum capital withdrawal plan (DTP)?
a) To eliminate market risks
b) To increase market volatility
c) To manage risks and rebalance portfolios
d) To discourage diversification
e) To increase taxes
Q 12. Which category of investors of SEBI registered intermediaries are exempt from providing information under the Prevention of Money Laundering Act?
a) Individual investors
b) Institutional investors
c) Mutual funds
d) Listed companies
e) Majority-owned subsidiaries
Q 13. How can company-specific risks be reduced?
a) By increasing exposure to systematic risks
b) By ignoring market fluctuations
c) Through diversification across a diverse set of companies
d) By avoiding systematic risks
e) By focusing solely on cash investments
Q 14. What external factors may have an adverse bearing on the value of individual securities or specific sectors in a mutual fund scheme's portfolio?
a) Economic conditions
b) Political developments
c) Taxation laws
d) All of the above
e) None of the above
Q 15. What trends in dividend yields are preferred by conservative investors?
a) Decreasing trend
b) Stable trend
c) Increasing trends
d) Fluctuating trends
e) Inverse trends