NISM Series V A Mutual Fund Distributors Paper 16
| Q 1.While deciding on investments for his clients, what should be the right sequence? |
| Selection of Scheme - Risk Profiling - Making a Model Portfolio |
| Risk Profiling - Making a Model Portfolio - Selection of Scheme |
| Making a Model Portfolio - Risk Profiling - Selection of Scheme |
| Selection of Scheme - Making a Model Portfolio - Risk Profiling |
| Q2.What is the maximum Total Expense Ratio chargeable in the case of index funds? |
| It depends as the TER changes in line with the size of the scheme |
| Any amount that the AMC may deem appropriate |
| 1 percent of the daily net assets |
| 1.5 percent of the daily net assets |
| Q3.Tax Deferral is a key feature of ____. |
| Dividend Option |
| Growth Option |
| Arbitrage Fund |
| Liquid Schemes |
| Q4.Do arbitrage Funds have BASIS risks - True or False? |
| True |
| False |
| Q5.Investments owned by the scheme may be quoted in the market at a lower price than the cost paid and these losses are called Notional Losses - True or False? |
| True |
| False |
| Q6.In a mutual fund application form, if 'Direct' is mentioned in the space provided for ARN and the choice of regular plan is indicated then the application will be considered as ___. |
| Direct plan application |
| Regular plan application |
| Incomplete and rejected |
| Incomplete and sent to the investor for completion |
| Q7.Identify the TRUE statement with respect to 'Tracking Error'. A. Tracking error is calculated as the standard deviation of the excess returns generated by fund B. While comparing different index funds, one should invest in a fund with high tracking error |
| Only A is True |
| Ony B is True |
| Both A and B are true |
| Q8.Return from a fund is 11.5% and the risk-free rate is 7%, the Standard deviation is 3 & the Beta is 1.9. What will be the denominator for calculating the Sharpe ratio? |
| 4.5 |
| 3 |
| 1.9 |
| 11.5 |
| Q9.The details and information provided in the Scheme Information Document (SID) and Statement of Additional Information (SAI) are ___. |
| applicable only for closed-ended schemes |
| applicable only for open-ended schemes |
| common for all schemes - open or close-ended |
| applicable only for a particular scheme |
| Q 10. What is the NAV if the value of stocks in a Mutual Fund scheme is Rs 100 cr, the Value of Bonds is Rs 10 cr, the Value of Money Market Instruments is Rs 25 cr, Dividend is Accrued but not received is Rs 3 cr and Fees payable is Rs 5 cr. The number of outstanding units is 75 lacs. |
| 173.33 |
| 177.33 |
| 184 |
| 186.74 |