NISM Series V A Mutual Fund Distributors Exam Series - 22

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Q 1. What is typically specified as the default SIP date, frequency, and end date?

a) The first day of the month, monthly, no end date

b) The last day of the month, quarterly, end date specified by the investor

c) The 15th of the month, semi-annual, no end date

d) The 30th of the month, annual, end date specified by the investor

e) The 1st of the month, monthly, end date specified by the investor

Q 2. Which of the following is NOT an acceptable method for verifying identity and address proof during the KYC process?

a) True Copy attested by a Notary Public

b) Verification by a Gazetted Officer

c) Submission of self-declaration without any supporting documents

d) In-person verification (IPV) by an authorized intermediary

e) True Copy attested by a Manager of a Scheduled Commercial Bank

Q 3. How does the credit risk of corporate bonds compare to that of government securities?

a) Corporate bonds carry higher credit risk

b) Government securities carry higher credit risk

c) Both carry similar credit risk

d) Credit risk does not apply to government securities

e) Credit risk does not apply to corporate bonds

Q 4. What is the difference between market/systematic risk and company-specific risk?

a) Market risk affects individual companies, while company-specific risk affects the entire market

b) Market risk is diversifiable, while company-specific risk is non-diversifiable

c) Market risk impacts the entire economy, while company-specific risk impacts specific companies

d) Market risk is predictable, while company-specific risk is unpredictable

e) Market risk is reduced through diversification, while company-specific risk is not affected by diversification

Q 5. Why is it difficult to determine capital appreciation in real estate investments in the short term?

a) Due to frequent market fluctuations

b) Due to lack of demand for real estate

c) Due to long holding periods required for significant appreciation

d) Due to government regulations

e) None of the above

Q 6. How did mutual fund schemes shift from PRI to TRI benchmarking?

a) To decrease transparency in mutual fund performance

b) To align scheme performance calculation with dividend distribution

c) To increase transparency in mutual fund performance

d) To simplify benchmarking procedures

e) To decrease the number of schemes beating their benchmark indices

Q 7. What strategies can investors use to incorporate sector funds into their portfolios?

a) Core and satellite strategy

b) Dollar cost averaging

c) Buy and hold strategy

d) Market Timing

e) Asset allocation strategy

Q 8. What factor examines the taxation of earnings from investments?

a) Tax deduction

b) Returns

c) Ticket size

d) Liquidity

e) Taxability of income

Q 9. What factors should investors consider to manage investment risks effectively?

a) Follow speculative investment tips

b) Ignoring diversification strategies

c) Understanding behavioral biases

d) Chasing high returns without regard for risk

e) Seeking professional help without self-assessment

Q 10. What distinguishes an Aggressive Hybrid Fund from a Balanced Hybrid Fund?

a) Aggressive Hybrid Funds have higher equity allocation

b) Aggressive Hybrid Fund has higher debt allocation

c) A Balanced Hybrid Fund allows arbitrage opportunities

d) Balanced Hybrid Fund has higher foreign securities allocation

e) None of the above

Q 11. Which of the following accurately describes exchange-traded funds (ETFs)?

a) ETFs have a fixed portfolio strategy

b) ETFs can only be traded once a day

c) ETFs are actively managed mutual funds

d) ETFs provide additional liquidity for investors

e) None of the above

Q 12. What is the role of the cash management team within the Customer Services Team?

a) Handling investor queries

b) Settling transactions with custodians

c) Passing money received from banks to fund managers

d) Managing branding and advertising

e) Resolving service issues through call centers

Q 13. What action should employees of market intermediaries take regarding unverified market-related news?

A) Share it immediately with clients for their information

B) Forward it to their colleagues for discussion

C) Forward it to the Compliance Officer only after verification

D) Ignore it completely

E) None of the above

Q 14. How often is the Net Asset Value (NAV) of each scheme required to be disclosed?

A) Weekly

B) Monthly

C) Quarterly

D) Daily

E) Annually

Q 15. Which of the following information is NOT typically included in a scheme performance dashboard on a mutual fund website?

a) Scheme name

b) Investment objective of the scheme

c) Daily NAV fluctuations

d) Name of the fund manager

e) Scheme classification and category

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