NISM Series V A Mutual Fund Distributors Exam Series -13
NISM Series VA Mutual Fund Distributors Exam Series -13
Q 1. What is considered the basis point for calculating capital gains under the grandfathering provision?
a) The purchase price of the units
b) NAV as of January 31, 2018
c) The selling price of the units
d) The highest NAV during the holding period
e) None of the above
Q 2. How are commissions paid under Direct Plans?
a) Commissions are paid to distributors
b) Commissions are paid to institutional investors
c) Commissions are paid to foreign investors
d) Commissions are not paid
e) Commissions are paid directly to the fund manager
Q 3. Is a separate KYC required for opening a demat account for mutual fund units?
a) Yes, it is mandatory
b) No, KYC is not required
c) Yes, but only for certain investors
d) No, if KYC is already done by any other capital market intermediary
e) Yes, but only for units held in demat mode
Q 4. What is the switch in the context of mutual funds?
a) An investment into a new scheme
b) A redemption from one scheme and a purchase into another combined into one transaction
c) Withdrawal of dividends
d) A reinvestment of dividends
e) The transfer of units between different investors
Q 5. What is the purpose of the Delivery Instruction Slip (DIS) in demat mode transactions?
a) To request additional units
b) To request a change in the fund manager
c) To request a change in nominee
d) To authorize the transfer of units from one demat account to another
e) To authorize the transfer of funds from one bank account to another
Q 6. When will the SWP stand cancelled?
a) If the investor fails to provide updated bank details
b) When the investor's account balance is insufficient
c) When all the units are redeemed
d) When market conditions are unfavorable
e) When the investor decides to switch schemes
Q 7. How are credit limits assigned to credit risk management?
a) Based on government regulations
b) Based on economic forecasts
c) Based on management discretion
d) Based on issuer credit profiles and tenor
e) Based on shareholder preferences
Q 8. What is the standard deviation measure for the returns of a scheme?
a) The scheme's average return
b) The scheme's total risk
c) The scheme's annualized return
d) The scheme's NAV fluctuation
e) None of the above
Q 9. What risk is inherent in short-selling securities?
a) Market risk
b) Credit risk
c) Liquidity risk
d) Interest rate risk
e) Operational risk
Q 10. What is Tracking Error a measure of?
a) Market volatility
b) Consistency of out-performance relative to the benchmark
c) Standard deviation of excess returns
d) Index fund returns
e) Scheme evaluation
Q 11. What are the potential consequences of solely relying on recent past performance when choosing a mutual fund scheme?
a) Guaranteed high returns
b) Minimized risk
c) Potential disappointment if performance changes
d) Tax exemption
e) Increased liquidity
Q 12. In the context of rebalancing, what benefits do buying low and selling high offers to investors?
a) It increases investment costs
b) It reduces investment risks
c) It maximizes returns
d) It maintains the current asset allocation
e) It restores the target asset allocation
Q 13. What term is used to describe fluctuations in security prices due to changing opinions in the market?
a) Inflation risk
b) Liquidity risk
c) Credit risk
d) Market risk
e) Operational risk
Q 14. How does mutual fund investment comfort benefit investors?
a) By making subsequent investment activity more complicated
b) By requiring extensive documentation for further purchases
c) By simplifying subsequent investment activity with very little documentation
d) By limiting investment choices
e) None of the above
Q 15. What is the primary investment objective of a long-duration fund?
a) To provide high liquidity
b) To generate capital appreciation/income from equity investments
c) To generate a steady stream of income through investment in fixed-income securities
d) Focus solely on short-term gains
e) None of the above
Get More Mock Tests Here