NISM Series V A Mutual Fund Distributors Paper 07
| Q 1.A mutual fund scheme can invest ____ in the equity instruments of a company. |
| 5% of the net assets |
| 10% of the net assets |
| 15% of the net assets |
| 25% of the net assets |
| Q 2. The expenses which can be charged by an Asset Management Company to a Mutual Fund scheme are limited by __. |
| Fund Managers |
| Sponsors |
| Investors |
| SEBI |
| Q3.Where are the 'Standard Risk Factors' of a Mutual Fund scheme disclosed? |
| Fund Fact Sheet |
| Addendum |
| Statement of Additional Information (SAI) |
| Scheme Information Document (SID) |
| Q4.Fund Age is a more important criterion to be studied while investing in ____. |
| Debt Schemes |
| Equity Schemes |
| Treasury Bonds |
| None of the above |
| Q5.Foreign investors can invest in equity schemes of MFs registered with SEBI after completing the KYC process - State True or False? |
| True |
| False |
| Q6.With which agency are the mutual fund distributors registered? |
| Securities and Exchange Board of India |
| Fund Accounting Team |
| Depositories |
| Association of Mutual Funds in India |
| Q7.The fund that takes contrary positions in different markets/securities such that the risk is neutralized and return is earned is called ____. |
| Thematic funds |
| Dividend yield schemes |
| Arbitrage funds |
| Sector funds |
| Q8.The purchasing power of currency changes on account of which of the following? |
| Diversification |
| Inflation |
| Compound interest |
| Asset allocation |
| Q9.The main objective of asset allocation is risk management - True or False? |
| True |
| False |
| Q10.Identify the false statement(s). A) The best strategy in selecting a mutual fund scheme is that based on its past performance B) When an investor wants to redeem from a scheme, the distributor must suggest redemption from the scheme with the maximum exit load |
| Only statement A is False |
| Only statement B is False |
| Both statements A and B are false |