NISM Series V A Mutual Fund Distributors Paper 06
| Q 1.A mutual fund has the policy of imposing an exit load of 2% for redemption up to one year and 1% for redemptions beyond one year. If an investor redeems 2000 units at a NAV of Rs 40 at the end of six months from the date of investment, what will be the redemption amount receivable by the investor |
| Rs. 76500 |
| Rs. 79200 |
| Rs. 80000 |
| Rs. 78400 |
| Q2.The dividends is declared on units that are under a lien will be paid to ____. |
| the unitholder only |
| the lien holder only |
| the unitholder or lienholder as per the agreement |
| the unitholder or lienholder as per the terms of issue of mutual fund units |
| Q3.If an investor in a Multicap Fund wants to know the industry-wise allocation of the funds then which document should he refer to? |
| Fund Factsheet |
| SID and SAI |
| Investment management agreement |
| Annual accounts of the AMC |
| Q 4. The credit rating of a bond migrates from AAA to AA+. Determine what will the impact of this migration on the market price of the bond? |
| The bond price will rise |
| The bond price will fall |
| No change in the bond price |
| The price can rise or fall depending on the market conditions |
| Q5.Dividend warrants have to be sent to investors within 30 days of dividend declaration - True or False? |
| True |
| False |
| Q6.Registrar and Transfer Agency function must be independent of the Asset Management Company, and it cannot be retained in-house. State whether this statement is True or False. |
| True |
| False |
| Q7.How often should the Key Information Memorandum (KIM) be updated? |
| At least once a month |
| At least once every six months |
| At least once a year |
| It need not be updated after it is issued once |
| Q8.The AMFI Code of Ethics (ACE) sets out __. |
| The standards of good practices to be followed by the AMCs in their operations and in their dealings with investors, intermediaries, and the public. |
| The standards of good practices to be followed by the AMCs in their operations and in their dealings with mass media |
| The standards of good practices to be followed by mutual fund distributors in their dealings with AMFI, AMCs, and investors |
| The standards of good practices to be followed by fund managers in their dealings with AMFI and investors |
| Q 9.Ultra-short-term debt scheme invests in debt and money market instruments with Macaulay duration between ____. |
| 1 to 3 months |
| 3 to 6 months |
| 6 to 12 months |
| 1 year to 3 years |
| Q10.Stamp duty is required to be paid for which of these mutual fund transactions? A. New purchases B. Systematic Investment Plan (SIP) C. Dividend reinvestment D. Systematic Transfer Plan (STP) |
| A, B, and D |
| Only A |
| B and D |
| A, B,C, and D |