NISM Series V A Mutual Fund Distributors Paper 02
| Q1.A bond issued by a company has a coupon of 7%. The interest rate in the market for bonds of similar tenor and credit quality is now 8%. An investor holding the bond will see __. |
| The market price of the bond goes up |
| The market price of the bond goes down |
| The coupon of the bond goes up |
| No change in the market price |
| Q 2.Which tax is payable on the redemption of units of Equity Oriented fund? |
| Dividend distribution tax |
| Securities transaction tax |
| Wealth tax |
| Alternate dividend tax |
| Q3.What would be the most appropriate benchmark for a short term debt scheme? |
| 10 year dated GoI security |
| 3 year dated GoI security |
| 1-year T-Bill |
| No such benchmark exists |
| Q 4.Can Indian mutual funds invest in Real Estate? |
| Yes |
| No |
| Q 5. The interim changes in a mutual fund scheme are updated to the investors through _____. |
| Key Information Memorandum (KIM) |
| Statement of Additional Information (SAI) |
| Addendum |
| Scheme Information Document (SID) |
| Q6.Identify the TRUE statement - |
| The mutual fund investor has the complete freedom to change the distributor any time he wants |
| Once an investor had invested through a distributor, he cannot change the distributor |
| Once an investor had invested by online method, he cannot change the distributor |
| Once an investor had invested through a distributor, he cannot invest directly with the mutual fund house |
| Q7.Legally SAI is part of the SID - True or False? |
| True |
| False |
| Q8.In which of the following cases is the transaction charge to be paid to the mutual fund distributor, deducted from the gross investment of the investor? |
| When the investor purchases mutual fund units worth Rs 5000 through a mutual fund distributor |
| When the investor purchases mutual fund units worth Rs 10000 through a mutual fund distributor |
| When the investor purchases mutual fund units worth Rs 5000 through the websites of the mutual fund |
| When the investor purchases mutual fund units worth Rs 10000 through the websites of the mutual fund |
| Q 9.A segregated portfolio means ___. |
| a portfolio which is kept aside for a ‘rainy day’ or contingency fund |
| a portfolio that is created out of debt or money market securities affected by a credit event |
| a portfolio which is left after removing poor credit quality papers |
| All of the above |
| Q10.Return from a fund is 9% and the risk-free rate is 5%, the Standard deviation is 3 & the Beta is 1.6. What will be the numerator for calculating the Sharpe ratio? |
| 3 |
| 6 |
| 1.6 |
| 4 |