NISM Series V A Mutual Fund Distributors Exam Series - 2
NISM Series VA Mutual Fund Distributors Exam Series - 2
Q 1. Which segment of the Bombay Stock Exchange (BSE) allows for transactions in mutual fund units?
a) BSE-Star MF
b) NSE Mutual Fund II Platform (NMF-II)
c) BSE Equity Segment
d) BSE Derivatives Segment
e) BSE Debt Segment
Q 2. What is the purpose of AMFI's Code of Conduct for Intermediaries of Mutual Funds?
a) To promote unethical practices among intermediaries
b) To discourage intermediaries from selling mutual fund products
c) To maintain high ethical standards among intermediaries
d) To penalize investors for breaches of conduct
e) Restrict access to mutual fund products for investors
Q 3. What does the Expenses section of the KIM disclose?
A) Personal expenses of the Fund Manager
B) Administrative expenses of the Asset Management Company (AMC)
C) Travel expenses of the Trustee
D) Expenses of the scheme, including management fees
E) None of the above
Q 4. How are units allotted to investors after deducting the transaction charge?
a) Based on the gross subscription amount
b) Based on the net subscription amount
c) Based on the total transaction charge
d) Based on the NAV at the time of investment
e) None of the above
Q 5. What is the Employee Unique Identification Number (EUIN) used for?
a) To obtain an ARN
b) To register with AMFI
c) To verify educational qualifications
d) To quote in the Application Form for client investments
e) None of the above
Q 6. How is the exit load calculated in a mutual fund scheme?
a) By reducing the NAV
b) By deducting a percentage from the Sale Price
c) By increasing the NAV
d) By adding a percentage to the Sale Price
e) By adjusting the expense ratio
Q 7. How is the surcharge calculated under the capital gains tax?
a) On the purchase price of the units
b) On the selling price of the units
c) On the base tax
d) On the aggregate of base tax and cess
e) None of the above
Q 8. Who bears the Goods and Services Tax (GST) on brokerage and transaction costs in mutual fund schemes?
a) Investors
b) Asset management companies (AMCs)
c) Distributors
d) Securities and Exchange Board of India (SEBI)
e) Government of India
Q 9. How long does it typically take to register the OTM mandate?
a) 1 to 2 weeks
b) 2 to 3 weeks
c) 3 to 4 weeks
d) 4 to 5 weeks
e) None of the above
Q 10. What happens if no selection is made regarding the mode of holding and operating the account in a mutual fund application form?
a) The application form is rejected
b) The default option mentioned in the application form is applied
c) The account is frozen
d) The application is put on hold
e) The account is closed automatically
Q 11. What is the primary purpose of KYC compliance for mutual fund investors?
a) To track investment performance
b) To ensure compliance with Anti-Money Laundering Laws
c) To calculate investor returns
d) To verify the investor's age
e) None of the above
Q 12. What should accompany a change request in the KRA change form, if available?
a) Bank statement
b) Passport
c) Self-attested copy of PAN
d) Voter ID
e) Utility bill
Q 13. Who is eligible to make cash investments in mutual funds?
a) Non-resident individuals
b) Corporations
c) Resident individuals, sole proprietorships, and minors investing through their guardians
d) Partnership firms
e) None of the above
Q 14. In analyzing the default rate distribution of a loan pool, which category indicates a higher risk?
a) 0-30 days past due (DPD)
b) 30-60 days past due (DPD)
c) 60-90 days past due (DPD)
d) Current
e) 90+ days past due (DPD)
Q 15. What is the purpose of security selection in equity portfolio management?
a) To predict market conditions
b) To avoid market timing
c) To construct a portfolio different from the benchmark
d) To generate fixed returns for investors
e) To minimize market risks