NISM Series V A Mutual Fund Distributors Exam Series - 25
NISM Series VA Mutual Fund Distributors Exam Series - 25
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Q 1. How do mutual fund research agencies evaluate schemes?
a) Based on current market trends
b) By predicting future performance
c) Using risk-adjusted returns
d) Solely relying on past performance
e) By considering potential future growth
Q 2. Which type of fund allows the fund manager to target better returns by investing in relatively illiquid stocks without the pressure of investor redemptions?
a) Index funds
b) Open-ended funds
c) Growth funds
d) Close-ended funds
e) Sector funds
Q 3. What is a key benefit of diversification as a risk management strategy?
a) Higher returns
b) Lower investment costs
c) Elimination of all investment risks
d) Reduction of the probability of losing everything
e) Consistent profitability
Q 4. What type of investment is most affected by liquidity risk?
a) Equity shares
b) Government securities
c) Real estate
d) Fixed deposits
e) Public Provident Fund (PPF)
Q 5. What do Assets Under Management (AUM) represent in the mutual fund industry?
a) The total number of mutual fund schemes offered by an asset management company
b) The total number of investors in a mutual fund scheme
c) The total size of investments made by investors in a mutual fund scheme
d) The total profit generated by a mutual fund scheme
e) None of the above
Q 6. Why has SEBI imposed strict limits on expenses charged to mutual fund schemes?
a) To maximize investor returns
b) To increase market volatility
c) To encourage excessive risk-taking
d) To discourage investment in mutual funds
e) None of the above
Q 7. What role do credit rating agencies play in mutual fund investments?
a) Calculating Net Asset Value (NAV)
b) Ensuring transparency in valuation practices
c) Rating of debt securities issued by various issuers
d) Facilitating transactions by allowing investors to buy mutual fund units
e) Auditing the accounts of mutual fund schemes
Q 8. What is one of the objectives of SEBI's regulations regarding issuers of securities?
a) Maximizing profits for issuers
b) Minimizing regulation
c) Disclosing relevant information to investors
d) Encouraging excessive risks
e) Promoting speculative trading
Q 9. In what language should the newspaper advertisement regarding a change in control of the AMC be published?
a) English only
b) Hindi only
c) English and Hindi
d) As per the discretion of the fund manager
e) Regional language of the head office's location
Q 10. Which section of the SID provides a brief description of the nature of the mutual fund scheme, such as whether it's open-ended or close-ended, equity-oriented or debt-oriented?
a) Type of Scheme
b) Risk Factors
c) Investment Objective
d) Asset Allocation
e) Investment Strategy
Q 11. What information is required in the Request for Empanelment Form to become a mutual fund distributor with an AMC?
a) Only personal information
b) Personal and business details
c) Only bank details
d) Contact information of key people
e) None of the above
Q 12. What should be recorded by the asset management company if there is a change in the selected stock exchange for the valuation of a particular security?
a) No record is necessary
b) Only the change needs to be communicated to investors
c) Reasons for the change should be recorded in writing
d) Reasons for the change should be reported to SEBI
e) Reasons for the change should be disclosed in the annual report
Q 13. How does tax treatment vary for Resident Indian Investors, NRIs, and non-individual investors?
a) Tax treatment is the same for all types of investors
b) NRIs enjoy tax exemptions on capital gains
c) Tax treatment differs based on investment amount
d) Tax treatment differs based on investor type
e) None of the above
Q 14. Which government department issued a notification regarding stamp duty on mutual fund units?
a) Ministry of Finance
b) Ministry of Law and Justice
c) Ministry of Corporate Affairs
d) Ministry of Commerce and Industry
e) Ministry of Home Affairs
Q 15. How does the Central KYC Registry handle the de-duplication of KYC records?
a) By deleting duplicate records
b) By ignoring duplicate records
c) By issuing unique identifiers for each record
d) By rejecting duplicate records
e) None of the above