NISM Series V A Mutual Fund Distributors Exam Series - 4
NISM Series V A Mutual Fund Distributors Exam Series - 4
Q 1. What is one limitation regarding costs in mutual funds for individual investors?
a) Lack of transparency in cost structure
b) Inability to assess the performance of fund managers
c) No control over costs incurred for managing the scheme
d) Limited access to professional advisors
e) None of the above
Q 2. What analogy is used to describe the relationship between depositories and depository participants?
a) Head office and branch of the bank
b) CEO and COO of a company
c) Board of directors and shareholders
d) Fund manager and investor
e) Registrar and transfer agent (RTA) and investor
Q 3. Which team within AMC performs the role of processing purchase and redemption transactions and updating investor records?
a) Sales and marketing team
b) Fund accounting team
c) Administration department
d) Custody team
e) Information Technology department
Q 4. What is the responsibility of Asset Management Companies (AMCs) regarding the regulation of distributors?
A) They are not responsible for regulating distributors
B) They are responsible for conducting due diligence on distributors
C) They are responsible for marketing mutual fund schemes to distributors
D) They are responsible for providing financial incentives to distributors
E) None of the above
Q 5. What does the Statement of Additional Information (SAI) contain?
a) Investment performance data
b) Contact information of shareholders
c) Statutory information about the mutual fund or AMC
d) Details of individual scheme portfolios
e) Market analysis reports
Q 6. How do some AMCs manage empanelment for distributors who are unlikely to generate adequate business?
a) By terminating their empanelment
b) By reducing their commission rates
c) By requesting them to work under other empaneled distributors
d) By providing additional training
e) None of the above
Q 7. What is the primary mode of operation for online distributors?
a) Physical office visits
b) Hybrid mode
c) Digital transactions
d) Paper-based transactions
e) Electronic platforms such as websites and mobile phones
Q 8. How much has the investment in equities appreciated if Rs. 140 crores were invested and it has appreciated by 10 percent?
a) Rs. 14 crores
b) Rs. 10 crores
c) Rs. 126 crores
d) Rs. 154 crores
e) Rs. 150 crores
Q 9. In the case of a total long-term capital gain of Rs. 1,10,000 from equity shares and equity-oriented mutual funds, how much of the gain is subject to tax?
a) The entire Rs. 1,10,000 is tax-exempt.
b) Rs. 10,000 is tax-exempt, and the remaining Rs. 1 lakh is subject to tax.
c) The entire Rs. 1,10,000 is subject to tax.
d) Rs. 1 lakh is tax-exempt and the remaining Rs. 10,000 is subject to tax.
e) None of the above
Q 10. Apart from Direct and Regular Plans, can mutual funds offer separate plans based on expense ratio?
a) Yes
b) No
c) Only for institutional investors
d) Only for foreign investors
e) Only for high-net-worth individuals
Q 11. How many holders can a mutual fund investment have?
a) One
b) Two
c) Three
d) Four
e) There is no limit
Q 12. What happens once the SIP Top-Up amount reaches the pre-defined upper limit or date?
a) The SIP amount decreases.
b) The Top-Up facility is continued indefinitely.
c) The SIP amount remains constant.
d) The SIP amount will be refunded to the investor.
e) The SIP will be automatically renewed.
Q 13. What is the primary purpose of the One-Time Mandate (OTM) facility for mutual fund transactions?
a) To authorize the bank to process debits for mutual fund purchases
b) To authorize the mutual fund to withdraw money from the bank account
c) To provide investment advice
d) To facilitate online banking transactions
e) None of the above
Q 14. What takes precedence for KYC validation and address information in a mutual fund folio?
a) Information provided in the mutual fund application form
b) The address provided in the KYC form overrides the information in the application form
c) Information provided by the guardian
d) Information provided by the PoA holder
e) Information provided by the joint holder
Q 15. Who must sign a nomination form for a joint holding in a mutual fund investment?
a) Only the primary investor
b) Only the secondary investor
c) Both primary and secondary investors
d) The fund manager
e) The nominee
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