NISM Series V A Mutual Fund Distributors Exam Series - 6

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Q 1. What happens to standing instructions like SIP, SWP & STP when a minor attains majority?

a) They continue to be executed as before

b) They are terminated immediately

c) They are suspended until further notice

d) They are transferred to the guardian's account

e) They are transferred to the minor's account

Q 2. What is the purpose of the transaction slip for mutual fund investments?

a) To withdraw funds from the mutual fund account

b) To apply for a loan against mutual fund units

c) To make additional purchases in an open-ended scheme

d) To switch between different mutual fund schemes

e) To redeem mutual fund units

Q 3. What type of bank accounts are mentioned as options in the bank account details section of the application form?

a) Checking and savings accounts only

b) Checking, savings, and fixed deposit accounts only

c) Current, savings, NRO, NRE, FCNR, and others

d) Only NRO and NRE accounts

e) Current, savings, and fixed deposit accounts only

Q 4. Who should sign the Third-Party Declaration form?

a) The mutual fund manager

b) The investor

c) Third party making the payment

d) The joint account holder

e) None of the above

Q 5. What are some risks associated with investment in real estate funds?

a) High liquidity

b) Low transaction costs

c) Regulatory risk

d) Transparent valuation

e) None of the above

Q 6. What must distributors carefully evaluate and select regarding hybrid funds?

a) The level of market risk

b) The asset allocation between equity and debt

c) The dividend payout frequency

d) Sectoral exposure

e) None of the above

Q 7. How does the Sharpe Ratio compare?

a) Risk-free rate with return on investment

b) Return on investment with a risk premium

c) Standard deviation with beta

d) Return on investment with beta

e) Risk premium with standard deviation

Q 8. What does the equity component in a hybrid fund primarily provide?

a) Stability to returns

b) Regular income

c) Appreciation of value

d) Liquidity

e) Low volatility

Q 9. How can investors gain exposure to international assets?

a) By investing in stocks listed only in local currency

b) By investing in domestic assets only

c) By investing in bonds denominated only in local currency

d) By investing in stocks and bonds listed outside your home country

e) By investing in real estate domestically

Q 10. What is the significance of risk profiling in investment planning?

a) Predicting short-term market fluctuations

b) Identifying the most popular investment options

c) Assessing an investor's tolerance for risk

d) Guaranteed high returns on investments

e) Minimizing the impact of inflation

Q 11. How do mutual funds benefit governments?

a) By reducing tax revenue

b) By promoting irresponsible spending

c) By investing in government projects

d) By hindering economic growth

e) None of the above

Q 12. What are the key characteristics of a Dynamic Asset Allocation or Balanced Advantage fund?

a) Fixed allocation between equity and debt instruments

b) Managed dynamically based on market conditions

c) Predominantly invest in foreign securities

d) Invest in at least three asset classes with equal allocation

e) None of the above

Q 13. What distinguishes Category 1 EOPs from Category 2 EOPs?

a) Type of service provided

b) Regulatory authority for registration

c) Ownership structure

d) Geographic location of operation

e) Number of transactions facilitated

Q 14. Who appoints the custodian in a mutual fund?

a) Asset Management Company (AMC)

b) Trustees

c) SEBI

d) Sponsor

e) Unit-holders

Q 15. What is the time lag for disclosing details of debt and money market securities transacted in mutual fund scheme portfolios?

A) 1 day

B) 7 days

C) 15 days

D) 30 days

E) None of the above

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