NISM Series V A Mutual Fund Distributors Exam Series - 27

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Q 1. Who among the following is eligible to invest in most schemes of mutual funds?

a) Only resident Indian adults

b) Only NRIs/PIOs residing abroad

c) Only foreign investors

d) Both resident Indian adults and NRIs/PIOs residing abroad

e) Only Hindu Undivided Families (HUFs)
 
Q 2. How is Weighted Average Maturity calculated for a debt scheme's portfolio?

a) By averaging the maturity of all securities in the portfolio

b) By summing the maturity of all securities weighted by their portfolio percentages

c) By dividing the maturity of the longest-held security by the total number of securities

d) By averaging the duration of all securities in the portfolio

e) None of the above
 
Q 3. What is the primary risk associated with marketable debt securities?

a) Credit risk only

b) Interest rate risk only

c) Liquidity risk only

d) Credit and interest rate risk

e) Market risk
 
Q 4. What benchmark is recommended by SEBI for debt schemes?

a) CRISIL Liquid Fund Index

b) Nifty composite G-sec index

c) S&P BSE India Sovereign Bond Index

d) CRISIL Overnight Index

e) CRISIL Medium Term Corporate Bond Index
 
Q 5. How many levels of risk were introduced by SEBI in April 2015 for mutual fund schemes?

a) Three levels

b) Four levels

c) Five levels

d) Six levels

e) None of the above
 
Q 6. What type of funding strategy is beneficial over longer holding periods?

a) Growth funds

b) Value funds

c) Large-cap funds

d) Multi-cap funds

e) Flexi-cap funds
 
Q 7. What is one of the hidden costs associated with managing investments independently due to emotional attachment?

a) Financial constraints

b) Time spent on research and administration

c) Potential mistakes in investment decisions

d) Availability of investment options

e) None of the above
 
Q 8. Why is it important to adjust financial goal values for inflation?

a) To decrease the total cost of financial goals

b) To ensure accurate financial planning

c) To eliminate the need for financial goals

d) To increase the flexibility of financial goals

e) None of the above
 
Q 9. What happens to the NAV of a mutual fund scheme when there is an increase in AUM?

a) It increases

b) It decreases

c) It remains constant

d) It fluctuates randomly

e) None of the above
 
Q 10. How do Internet and mobile-based applications contribute to the mutual fund industry?

a) By auditing mutual fund transactions

b) By managing branding and advertising for mutual funds

c) By facilitating paperwork for mutual fund transactions

d) By calculating the Net Asset Value (NAV) of mutual funds

e) By selling mutual funds to investors
 
Q 11. What role does the Fund Accountant perform in an AMC?

a) Maintaining investor records

b) Processing purchase and redemption transactions

c) Calculating Net Asset Value (NAV)

d) Handling finance-related tasks

e) Managing branding and advertising
 
Q 12. What is the maximum percentage of a company's paid-up capital bearing voting rights that a mutual fund under all its schemes can own, according to SEBI regulations?

a) 5%

b) 10%

c) 15%

d) 20%

e) 25%
 
Q 13. Question: Who is known as the Father of Modern Physics?

a) Albert Einstein

b) Isaac Newton

c) Galileo Galilei

d) Nikola Tesla

e) James Clerk Maxwell
 
Q 14. Who is responsible for incorporating SEBI's observations in the Scheme Information Document (SID) and Statement of Additional Information (SAI)?

a) Individual investors

b) Mutual fund companies

c) Financial regulators

d) Stock market analysts

e) Association of Mutual Funds in India (AMFI)
 
Q 15. What is one of the prerequisites to becoming a distributor of a mutual fund?

a) Completion of a bachelor's degree

b) Obtaining NISM Certification

c) Completion of an internship at a financial institution

d) Having a minimum of 5 years of experience in sales

e) None of the above

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