NISM Series V A Mutual Fund Distributors Exam Series - 21

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Q 1. How are investors notified about the availability of the annual report or abridged summary?

a) Through a physical copy sent via mail

b) Through an advertisement in English and Hindi newspapers

c) Through email notification

d) Through SMS notification

e) All of the above

Q 2. Which document needs periodic updates, including changes through addendum?

A) Scheme Annual Report

B) Statement of Additional Information (SAI)

C) Key Information Memorandum (KIM)

D) Scheme Portfolio Statement

E) Quarterly Performance Report

Q 3. What documents need to be submitted along with the application form for the KYD process?

a) Birth certificate

b) Self-attested copy of PAN card and proof of address

c) College diploma

d) Bank statement

e) None of the above

Q 4. Which of the following platforms allows investors to buy direct plans for mutual funds?

a) Groww

b) Kuvera

c) Paytm money

d) Coin

e) All of the above

Q 5. What type of scheme incurs insurance premiums and costs of maintenance of real estate assets?

a) Gold exchange-traded fund scheme

b) Real estate mutual fund scheme

c) Capital-oriented scheme

d) Silver exchange-traded fund scheme

e) Debt-oriented scheme

Q 6. What is the tax treatment of dividends received by investors after the abolition of the dividend distribution tax (DDT)?

a) Taxable at a flat rate

b) Taxable at the investor's marginal tax rate

c) Tax-free

d) Exempt from taxation

e) None of the above

Q 7. How can the OTM mandate be used to make mutual fund purchases?

a) By submitting a cheque or demand draft along with the mandate form

b) By authorizing the bank to process debits for purchases

c) By providing a copy of the passport along with the mandate form

d) By submitting a Foreign Inward Remittance Certificate (FIRC)

e) None of the above

Q 8. What determines the default options for scheme, plan, option, and pay-out option?

a) Mutual fund company preference

b) Distributor's recommendation

c) SEBI regulations

d) Applicant's preference

e) Instructions listed in the application form

Q 9. What is the maximum limit for daily debits specified in the OTM mandate?

a) Rs. 5,000/ -

b) Rs. 10,000/ -

c) Rs. 20,000/ -

d) There is no maximum limit

e) None of the above

Q 10. What is the SIP Top-Up facility offered by mutual funds?

a) It allows investors to decrease their SIP amount over time.

b) It allows investors to increase their SIP amount at intervals chosen by them.

c) It allows investors to withdraw their SIP investments.

d) It allows investors to transfer their SIP investments to another scheme.

e) It allows investors to skip SIP payments periodically.

Q 11. Which of the following is NOT a method used for verification during the online KYC process?

a) OTP verification for mobile number and email

b) Aadhar number verification through the UIDAI authentication system

c) Handwritten signature submission through postal mail

d) PAN verification through the online tax database

e) Bank account verification through penny drop mechanism or API

Q 12. How does over-collateralization mitigate the counterparty risk in repo transactions?

a) By increasing the repo amount

b) By reducing the repo amount

c) By increasing the value of the collateral

d) By reducing the value of the collateral

e) By increasing the interest rate

Q 13. What is Settlement Risk also known as?

a) Credit risk

b) Interest rate risk

c) Currency risk

d) Liquidity risk

e) Counterparty risk

Q 14. Who needs to approve the imposition of restrictions on redemption according to SEBI regulations?

a) Investors

b) AMC Board and Trustees

c) SEBI

d) Stock exchanges

e) None of the above

Q 15. Which ratio uses standard deviation as a measure of risk?

a) Sharpe Ratio

b) Treynor Ratio

c) Beta Ratio

d) Risk Premium Ratio

e) Return Ratio

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