NISM Series V A Mutual Fund Distributors Exam Series - 3
NISM Series VA Mutual Fund Distributors Exam Series - 3
Q 1. How was dividend distribution tax (DDT) handled in the taxation of dividends before February 2020?
a) Deducted from the investor's taxable income
b) Deducted from the dividend before being paid to the investor
c) Paid by the investor separately
d) Not applicable
e) None of the above
Q 2. According to SEBI regulations, what information must be provided by non-individual investors?
a) Bank account details
b) Ultimate Beneficial Owner (UBO) details
c) Educational qualifications
d) Social Security number
e) Medical history
Q 3. How many bank accounts can an individual investor register to receive redemptions, dividends, and other payouts from a mutual fund?
a) Up to three bank accounts
b) Up to five bank accounts
c) Up to ten bank accounts
d) Unlimited bank accounts
e) None of the above
Q 4. What happens if the default bank account is deleted from the list of registered accounts?
a) The investor cannot delete the default account
b) Another account must be designated as the default account
c) The investor must inform the bank
d) The investor must inform the regulator
e) The default account remains active
Q 5. What is the primary purpose of re-materialization for investors?
a) To increase liquidity
b) To reduce paperwork
c) To convert digital units into physical form
d) To receive bonus units
e) Change investment options
Q 6. What should an NRI do regarding mutual fund investments upon returning to India?
a) Close all mutual fund investments
b) Inform relevant AMCs about the change of status, address, and bank details
c) Continue investing as an NRI
d) Convert all investments into fixed deposits
e) None of the above
Q 7. Who is responsible for complying with KYC requirements in case of investments made by a minor?
a) The minor investor
b) The Guardian of the minor
c) The intermediary facilitating the investment
d) Power of Attorney holder
e) The designated bank manager
Q 8. In what type of fund may the fund manager assume an active role in managing risk?
a) Overnight funds
b) Dynamic bond funds
c) Money market funds
d) Ultra short-term debt funds
e) Floating rate funds
Q 9. What is the role of the investment manager in managing liquidity risk?
a) To avoid liquidity altogether
b) To rely solely on cash reserves
c) To actively manage portfolio liquidity
d) To increase portfolio leverage
e) To invest in illiquid assets
Q 10. What determines the benchmark choice for Real Estate Funds?
a) Regulatory requirements
b) Fund manager's preference
c) Real estate indices developed by specialized companies
d) AMFI recommendations
e) Fund size
Q 11. What caution is advised regarding the Risk-o-meter in making investment decisions?
a) The Risk-o-meter only reflects historical performance and may not predict future risks.
b) Risk-o-meter should be the sole factor in making investment decisions.
c) The Risk-o-meter shows only the risk level of the asset and not the investor's risk tolerance.
d) Both A and C
Q 12. Why do mutual fund advertisements include a disclaimer about past performance?
a) To encourage investors to chase past performance
b) To discourage investors from considering past performance
c) To warn investors about the unpredictability of future performance
d) To guarantee future returns based on past performance
e) To attract investors with promising past performance
Q 13. What is the primary purpose of the Time Management Matrix?
a) To prioritize urgent tasks over important tasks
b) To categorize tasks based on their importance and urgency
c) To eliminate non-essential tasks from one's schedule
d) To allocate equal time to all tasks
e) None of the above
Q 14. How can Infrastructure Debt Funds (IDFs) be structured?
a) Only as a company
b) Only as a trust
c) Either as a trust or as a company
d) Only as a partnership
e) None of the above
Q 15. What is one advantage of mutual funds for investors in terms of professional management?
a) They offer higher returns compared to self-managed portfolios
b) They simplify the process of opening and managing multiple accounts in the securities markets
c) They provide professional management of investible funds, including research-based investing and prudent investment processes
d) They charge significantly higher fees compared to self-managed portfolios
e) None of the above
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