NISM Series V A Mutual Fund Distributors Paper 23

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Q1.The risk mitigation strategies adopted by the fund management to control and manage the risks associated with investing in specific types of securities are described in the ____.
 Scheme Information Document (SID)
 Statement of Additional Information (SAI)
 Fund Factsheet
 KYC form

 

Q2.Which of these statement(s) is/are TRUE? A) If the mutual fund units are held in Demat form, they cannot be converted into physical form B) When a mutual fund is redeemed or when there is a dividend payout, the amount will be credited to the bank account linked to the Demat account for those mutual fund investors who opt for Demat units
 Only A is correct
 Only B is correct
 Both A and B are correct

 

Q3.Which of the following is a measure of market risk?
 Beta Coefficient
 Sharpe Ratio
 Treynor Ratio
 None of the above

 

Q4.Which of the following options form the basis of the appointment of a Mutual Fund distributor?
 An agreement between the AMC and the Distributor
 Approval from SEBI
 Power of Attorney from the AMC
 An agreement with AMFI

 

Q5.An investor gives a cheque of Rs 2 lacs for investing in an ELSS scheme at 2.30 pm at a Mutual Fund office. The NAV of which day will be applicable to him?
 NAV of the same day
 NAV of the next business day
 NAV of the day on which funds will be available
 None of the above

 

Q 6. A trader believes that he can always outperform the market. This is an example of _ bias.
 Recency
 Overconfidence / Optimism
 Herd Mentality
 Anchoring

 

Q7.You are expecting interest rates (yields) to rise in the markets. Where would you invest your money considering this forecast?
 Long Terms Debt Funds
 Short Term Debt Funds
 Equity Funds
 Banking Sector Funds

 

Q8.The Stock Exchanges which provide facilities for Mutual Fund trading also do the functions of Mutual Fund RTAs. - True or False?
 True
 False

 

Q 9. Why do we need Financial Planners?
 because people are not aware of investment avenues
 because people do not have the time
 because people do not know their financial goals
 all of the above

 

Q10.Identify the TRUE statement?
Mutual funds which are bank-sponsored are regulated by RBI and not SEBI
 SEBI and AMFI both regulate mutual funds in India
 Stock Exchanges regulates mutual funds in India
 SEBI regulates mutual funds in India

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