NISM MUTUAL FUND FOUNDATION 1
nism-mutual-fund-foundation-1
Mock Test with Answer key - Click Here >>
Q 1. Apart from capital appreciation, what other sources of income can real estate generate?
a) Dividends
b) Interest
c) Rental incomeÂ
d) Royalties
e) Capital gains
Q 2. What is the purpose of assessing an investor's risk profile?
A) To determine the investor's age and income level.
B) To evaluate the investor's willingness and ability to take risks.
C) To predict the investor's future investment returns.
D) To establish investor tax obligations.
Q 3. How do investors purchase units of a closed-ended mutual fund scheme?
A) By directly contacting the mutual fund company.
B) Through the stock exchange where the units are listed.
C) By submitting an application form to the Registrar and Transfer Agent (RTA)
D) Through online investment platforms only.
Q 4. What is the characteristic maturity range of securities in a Medium Duration Fund?
a) 1 year to 3 years
b) 3 months to 6 months
c) 6 months to 12 months
d) 3 to 4 years
e) None of the above
Q 5. What authority does AMFI have regarding the conduct of distributors in the mutual fund industry?
a) Auditing distributors' transactions
b) Providing investment advice to distributors
c) AMFI can impose penalties on distributors for misconduct.
d) Calculating Net Asset Value (NAV) of distributors' portfolios
e) Licensing distributors
Q 6. What is the role of the Insurance Regulatory and Development Authority of India (IRDAI)?
a) Regulating the banking system
b) Regulating the securities markets
c) Regulating the insurance market
d) Regulating the pension market
e) Representing the interests of consumers
Q 7. What information is included in the risk-o-meter of a mutual fund scheme?
a) Exit load and lock-in period
b) Month-end AUM and TER
c) Portfolio disclosure and yield of instruments
d) Risk level of the scheme relative to its benchmark
Q 8. What is the primary reason behind SEBI's directive regarding the full trail model of commission?
a) To increase distributor revenue
b) To align distributor incentives with investor interests
c) To reduce AMC profitability
e) None of the above
Q 9. Who appoints collection bankers in the context of mutual fund transactions?
a) Trustees
b) SEBI
c) Custodians
d) AMCs
Q 10. How does a mutual fund distributor contribute to the investment process?
a) By managing mutual fund schemes
b) By providing company-specific analysis
c) By constructing a portfolio of securities
e) By analyzing market factors
Q 11. How should equity instruments be generally valued for non-traded securities?
a) Based on the highest quoted price on the stock exchange
b) Solely based on earnings capitalization
c) Solely based on net asset value
e) Using a fixed valuation method determined by SEBI
Q 12. In the old regime, how was dividend distribution tax treated in the hands of the investor?
a) It was considered as a deductible expense
b) It was available as a setoff against other tax liabilities
c) It was not considered as a tax liability for the investor
e) It was directly deducted from the investor's income
Q 13. Can a nominee be specified for mutual fund units held in dematerialized mode?
a) Yes, governed by the AMC
b) No, only physical units can have nominees
c) Yes, governed by the depository
e) No, only corporations can be nominated
Q 14. How many nominees can be specified for a mutual fund investment?
a) One
b) Two
c) Three
e) Unlimited
Q 15. What happens to an investor's unit-holding upon dematerialization?
a) The investor receives cash equivalent to the units.
b) The units are held in physical form with the depository.
c) They are held electronically in a demat account.
e) The units are canceled, and the investor must repurchase them electronically.