NISM Series V A Mutual Fund Distributors Exam Series - 5

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Q 1. How has the Internet affected the geographical reach of mutual fund distributors?

a) It has reduced the geographical reach

b) It has not affected the geographical reach

c) It has expanded its geographical reach

d) It has made the geographical reach unpredictable

e) It has shifted the geographical reach to physical office locations

Q 2. What is the purpose of the NISM Series-V-A: Mutual Fund Distributors Certification Examination?

a) To assess the distributor's marketing skills

b) To evaluate the distributor's knowledge of mutual fund products

c) To determine the distributor's investment portfolio

d) To verify the distributor's employment history

e) None of the above

Q 3. What do the "net assets" of a mutual fund scheme include?

a) Only the amount originally invested by the investors

b) Only the profits booked in the scheme

c) Only the appreciation in the investment portfolio

d) The amount originally invested, the profits booked in the scheme, and the appreciation in the investment portfolio

e) None of the above

Q 4. What changes were made regarding the dividend distribution tax (DDT) in the Union Budget of February 2020?

a) DDT increased

b) DDT was abolished

c) DDT was made variable

d) DDT was made applicable only to certain investors

e) None of the above

Q 5. Can investors hold units in dematerialized form without providing details of the beneficiary's account and DP?

a) Yes

b) No

c) Only if they are investing in a specific scheme

d) Only if they have a joint account

e) Only if approved by the bank

Q 6. In case of a change in the Ultimate Beneficial Owner (UBO), to whom should the same be intimated?

a) SEBI

b) RBI

c) AMC/RTA

d) Charity Commissioner

e) Registrar of Companies

Q 7. What information is required to establish and verify the identity of the Ultimate Beneficial Owner (UBO) under the Prevention of Money Laundering Act?

a) Utility bill

b) Bank statement

c) Name/s, Address, PAN/Passport

d) Educational qualifications

e) Medical history

Q 8. What is the purpose of opening a Resident Foreign Currency (RFC) account by a returning Indian?

a) To hold foreign currency and continue to receive funds in foreign currency from investments abroad

b) To convert all funds to Indian Rupees

c) To close all existing accounts

d) To transfer funds to a foreign bank account

e) None of the above

Q 9. When can a nomination for a mutual fund investment be changed or canceled?

a) Only before the investment is made

b) Only after the investment matures

c) Anytime

d) Only with approval from the fund manager

e) Only upon the death of the investor

Q 10. Why might an investor choose a variable SWP?

a) To increase market risks

b) To decrease liquidity

c) To minimize taxes

d) To ensure capital withdrawal

e) To avoid withdrawing all units at once

Q 11. What could cause a bond to become illiquid, resulting in a loss in the value of a mutual fund portfolio?

a) Market volatility

b) Interest rate changes

c) Credit rating downgrades

d) Inflationary pressures

e) Political instability

Q 12. What risks do investors in gold funds face if the value of gold falls?

a) Currency risk

b) Inflation risk

c) Market risk

d) Geopolitical risk

e) None of the above

Q 13. What is the formula for calculating the Treynor Ratio?

a) (Rs - Rf) ÷ Beta

b) (Rs - Rf) ÷ Standard Deviation

c) (Rs - Rf) ÷ Risk Premium

d) (Rs - Beta) ÷ Standard Deviation

e) (Rf - Rs) ÷ Standard Deviation

Q 14. What is the advantage of Target Maturity Funds (TMFs) over Fixed Maturity Plans (FMPs)?

a) Higher liquidity

b) Guaranteed returns

c) Lower credit risk

d) Longer investment horizon

e) Fixed maturity date

Q 15. Compared to equity, how are bonds generally perceived in terms of risk?

a) Bonds are considered riskier

b) Bonds are considered equally risky

c) Bonds are considered safer

d) Bonds are considered illiquid

e) Bonds are considered highly volatile

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