NISM Series V A Mutual Fund Distributors Exam Series - 8

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Q 1. What factors drive the choice of benchmarks in debt schemes related to the investment universe?

a) Scheme type

b) Fund manager's preference

c) Regulatory requirements

d) AMFI recommendations

e) Fund size

Q 2. What does the Risk-o-meter primarily assess in mutual fund schemes?

a) Liquidity

b) Investment objective

c) Risk level

d) Exit option

e) Expense ratio

Q 3. How do government bonds differ from other bonds in terms of interest rates?

a) Government bonds offer higher interest rates

b) Government bonds offer lower interest rates

c) Government bonds offer variable interest rates

d) Government bonds offer fixed interest rates

e) Government bonds offer no interest payments

Q 4. What must be adjusted before calculating the return on investment in real estate?

a) Capital appreciation

b) Transaction costs

c) Maintenance costs and taxes

d) Dividends

e) Divisibility

Q 5. How do mutual funds enable tax deferrals for investors?

a) By requiring investors to pay tax on the income earned each year

b) By allowing investors to defer tax liability by letting the money grow in the scheme for several years

c) By exempting investors from paying taxes altogether

d) By guaranteeing tax-free returns

e) None of the above

Q 6. What is the legal structure of a mutual fund?

a) Corporation

b) Partnership

c) Trust

d) Sole proprietorship

e) None of the above

Q 7. What does the Sales and Marketing Team do to contribute to the growth of the distribution network?

a) Resolving service issues through call centers

b) Handling investor queries at branch offices

c) Interacting with custodians for settlement

d) Managing various interactions and training programs

e) Passing money received from banks to fund managers

Q 8. Who appoints the Registrars and Transfer Agents (RTAs) in an AMC?

a) AMC

b) SEBI

c) Custody team

d) Fund accounting team

e) Cash management team

Q 9. What key documents do unit holders have the right to inspect?

A) Annual reports and financial statements

B) Trust Deed, Investment Management Agreement, and Custodial Services Agreement

C) Sales brochures and marketing materials

D) Regulatory filings and compliance documents

E) None of the above

Q 10. What is the capital of France?

a) Rome

b) Madrid

c) Paris

d) Berlin

e) London

Q 11. How does the payment of the trial commission typically occur?

a) In one lump sum payment

b) As a percentage of transaction value

c) On an ongoing basis, periodically

d) At the time of purchase

e) None of the above

Q 12. What is the purpose of dividing the annual trial commission rate by 365?

a) To calculate the monthly trial commission

b) To calculate the daily trial commission

c) To calculate the upfront commission

d) To calculate the annual investment return

e) None of the above

Q 13. In what scenario is the creation of a segregated portfolio of debt and money market instruments by mutual funds schemes permitted?

a) During a market downturn

b) To manage liquidity risk

c) When there is excessive investor demand

d) When regulatory approvals are obtained

e) Only for specific types of mutual funds

Q 14. Under which section of the Income Tax Act are Equity Linked Savings Schemes (ELSS) eligible for tax deductions?

a) Section 80D

b) Section 80G

c) Section 80C

d) Section 80E

e) Section 80U

Q 15. Can an investor use a transaction slip to redeem mutual fund units?

a) Yes, always

b) No, only for additional purchases

c) Only if the units are held in dematerialized form

d) Yes, but only during NFO periods

e) No, a separate redemption form is required

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