NISM Series V A Mutual Fund Distributors Exam Series - 26

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Q 1. How are transaction charges applied to mutual fund subscriptions according to SEBI regulations?

a) Transaction charges are always waived for all investors

b) Transaction charges are only applicable for direct investments

c) Transaction charges are deducted from the subscription amount for investments of Rs. 10,000 and above

d) Transaction charges are fixed regardless of the investment amount

e) None of the above
 
Q 2. What is the characteristic of the "individual" channel of mutual fund distribution?

a) It operates through branch offices and employees

b) It involves a network of sub-agents

c) It mainly consists of individual agents operating single-handedly

d) It relies on electronic platforms for distribution

e) It is primarily managed by national distributors
 
Q 3. How does marking securities to their market value impact investors?

a) This ensures that investors receive higher returns

b) It provides accurate information for investment decisions

c) It reduces the NAV of the scheme

d) It increases the cost basis for tax purposes

e) It creates uncertainty about the scheme's performance
 
Q 4. How is the stamp duty amount calculated for mutual fund units issued against purchase transactions?

a) Fixed amount per unit

b) Percentage of NAV

c) Percentage of investment amount

d) Percentage of dividend income

e) Fixed amount per transaction
 
Q 5. What type of transactions are subject to stamp duty at the time of unit issue?

a) Redemption transactions

b) Dividend distribution transactions

c) Transfer transactions

d) Purchase transactions

e) Systematic withdrawal transactions
 
Q 6. How is NAV affected by the Growth option?

a) It remains unchanged

b) It increases

c) It decreases to the extent of the dividend paid

d) It fluctuates randomly

e) It doubles
 
Q 7. What happens if an investor's investment holding in the folio falls below the minimum limit set by the mutual fund during the repurchase process?

a) The mutual fund will automatically increase the investment holding

b) The mutual fund will close the investment folio and repurchase all the units

c) The investor will receive additional units to maintain the minimum limit

d) The investor's investment holding will remain unaffected

e) The investor will be charged a penalty fee
 
Q 8. What is the primary identifier used to send Consolidated Account Statements (CAS) to investors across mutual funds?

a) Email address

b) Transaction history

c) PAN (Permanent Account Number)

d) Account balance

e) Folio number
 
Q 9. What restrictions are imposed on the financial transactions of a minor-turned-major?

a) No debits or redemptions can be made in bank accounts, mutual funds folios, or demat accounts

b) No new investments can be made

c) No dividends can be received

d) No withdrawals can be made

e) No interest can be earned
 
Q 10. Who cannot be nominated as a beneficiary in a mutual fund investment?

a) Individuals

b) Minors

c) NRIs

d) Karta of the HUF

e) Power of Attorney holders
 
Q 11. If an investment has a Beta of 0.8, how much will it move when the market moves by 10 percent?

a) 8 percent

b) 10 percent

c) 12 percent

d) 16 percent

e) None of the above
 
Q 12. What is the purpose of gating provisions in debt funds?

a) To enhance liquidity

b) To restrict investor withdrawals during market turmoil

c) To ensure stable NAVs

d) To guarantee returns

e) None of the above
 
Q 13. What benchmark might a Real Estate Fund use, considering the current options available?

a) Nifty composite G-sec index

b) CRISIL Hybrid 25+75 Aggressive Index

c) S&P BSE Sensex

d) Real estate indices developed by real estate services companies

e) Shanghai Composite Index
 
Q 14. What aspects of the Risk-o-meter primarily focus on in mutual fund schemes?

a) Liquidity

b) Market capitalization

c) Risk

d) Returns

e) None of the above
 
Q 15. What type of mutual fund aims to benefit from opportunities across the market while keeping risk lower than mid-cap and small-cap funds?

a) Large-cap funds

b) Mid-cap funds

c) Small-cap funds

d) Multi-cap funds

e) Flexi-cap funds

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