NISM Series V A Mutual Fund Distributors Exam Series - 7
NISM Series VA Mutual Fund Distributors Exam Series - 7
Q 1. Who signs the cheques used for mutual fund purchases?
a) The banker
b) The mutual fund manager
c) The account holder
d) A mutual fund company
e) None of the above
Q 2. What are the risks associated with equity investments?
a) Fixed returns and low volatility
b) High volatility and absence of defined returns
c) Predictable earnings and stable prices
d) Low risk of loss and consistent dividends
e) Guaranteed returns and market stability
Q 3. What must distributors understand about the risks discussed in Section 10.1 of the book?
a) The risks are negligible for most investors
b) The risks are unimportant when considering investment objectives
c) The impact of risks on investors and their investment objectives
d) The risks only affect mutual fund managers
e) None of the above
Q 4. What factors determine the benchmark selection for mutual fund schemes?
a) Scheme's historical performance
b) Scheme NAV (Net Asset Value)
c) Scheme's investment objectives, asset allocation pattern, and investment strategy
d) Scheme's total expense ratio
e) Scheme's fund manager's preference
Q 5. What does the NAV of Gold ETFs closely track?
a) Share prices of gold companies
b) Price of gold metal
c) Performance of gold sector funds
d) Interest rates
e) Market indices
Q 6. How do equity shareholders potentially benefit from company profits?
a) By receiving fixed interest payments
b) By receiving capital appreciation only
c) By receiving dividends
d) By receiving rent payments
e) By receiving royalties
Q 7. What is the term used to describe investment returns adjusted for inflation?
a) Nominal rate of return
b) Real rate of return
c) Effective rate of return
d) Compound rate of return
e) Inflation-adjusted rate of return
Q 8. How do mutual funds benefit investors?
a) By guaranteeing high returns
b) By eliminating all investment risks
c) By providing diversification and professional management
d) By offering immediate liquidity for all investments
e) None of the above
Q 9. What are the key characteristics of an Equity Linked Savings Scheme (ELSS)?
a) There is a lock-in period of 1 year
b) It primarily invests in debt securities
c) It provides tax benefits with a statutory lock-in period of 3 years
d) It predominantly invests in international stocks
e) None of the above
Q 10. What does the custodian track in companies where the fund has invested?
a) Investment returns
b) Market trends
c) Corporate actions such as dividends, bonuses, and rights
d) Fund expenses
e) Regulatory changes
Q 11. Who appoints the directors of the Asset Management Company (AMC)?
a) Trustees
b) Custodian
c) Unit-holders
d) SEBI
e) Sponsor
Q 12. What is the timeline for an intermediary to explain receiving a complaint?
a) 1 week
b) 2 weeks
c) 3 weeks
d) 4 weeks
e) 5 weeks
Q 13. What is mentioned on the cover page of the SID?
a) Table of Contents
b) Introduction
c) Investment Objectives and Policies
d) Name and contact information of the AMC
e) Performance track record of the scheme
Q 14. How does the payment of an AUM-linked commission differ from that of a transaction-based commission?
a) AUM-linked commission is payable upfront, while the transaction-based commission is payable periodically.
b) AUM-linked commission is payable periodically, while the transaction-based commission is payable upfront.
c) Both are payable upfront.
d) Both are payable periodically.
e) None of the above
Q 15. What is the purpose of allowing transaction charges for mutual fund subscriptions?
a) To discourage investments in urban areas
b) To increase regulatory oversight
c) To incentivize distributors
d) To promote mutual fund investments in smaller towns
e) None of the above
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