NISM MUTUAL FUND FOUNDATION 8
NISM MUTUAL FUND FOUNDATION
Mock Test with Answer key - Click Here >>
Q 1. What factors drive the choice of benchmark in debt schemes in relation to the investment universe?
a) Scheme type
b) Fund manager's preference
c) Regulatory requirements
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
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
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
e) Divisibility
Q 5. What is the legal structure of a mutual fund?
a) Corporation
b) Partnership
c) Trust
e) None of the above
Q 6. Who appoints the Registrars and Transfer Agents (RTAs) in an AMC?
a) AMC
b) SEBI
c) Custody team
e) Cash management team
Q 7. How does the payment of trail commissions typically occur?
a) In one lump sum payment
b) As a percentage of transaction value
c) On an ongoing basis, periodically
e) None of the above
Q 8. How do mutual funds enable tax deferral 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
e) None of the above
Q 9. 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
e) Passing on money received from banks to fund managers
Q 10. What key documents do unit-holders have the right to inspect?
A) Annual s and financial statements
B) Trust Deed, Investment Management Agreement, and Custodial Services Agreement
C) Sales brochures and marketing materials
E) None of the above
Q 11. What type of mutual fund primarily invests in stocks and aims for long-term capital growth?
A) Money Market Funds
B) Bond Funds
C) Equity Funds
E) Index Funds
Q 12. What is the purpose of dividing the annual trail commission rate by 365?
a) To calculate the monthly trail commission
b) To calculate the daily trail commission
c) To calculate the upfront commission
e) None of the above
Q 13. In what scenario is the creation of segregated portfolio of debt and money market instruments by mutual fund schemes permitted?
a) During a market downturn
b) To manage liquidity risk
c) When there is excessive investor demand
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 deduction?
a) Section 80D
b) Section 80G
c) Section 80C
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
e) No, a separate redemption form is required