NISM Series V A Mutual Fund Distributors Paper 25
| Q 1.You are a mutual fund advisor. To whom would you advise investment of more than 70 % of their funds in debt funds? |
| A 33-year-old well employed with one son |
| A 45-year-old Executive Manager of a company who has 2 children |
| Elderly couple with no children |
| Young man working with Glaxo |
| Q2.A mutual fund scheme performance must always be measured relative to the __. |
| Asset class |
| Index |
| Investment objective |
| Benchmark |
| Q3.“To achieve growth by investing in equity and equity related investments, along with income generation by investing in debt and money market instruments” would be the investment objective of a _______. |
| debt fund |
| balanced scheme |
| ELSS Fund |
| Sectoral Equity fund |
| Q4.A Mutual Fund investor can file a case against the __ for breach of trust. |
| Mutual Fund |
| Trustees |
| Stock Exchange |
| No, an MF investor cannot file a suit. |
| Q5.In a scenario where interest rates are falling, it would be advisable to invest in a debt fund rather than a bank deposit - True or False? |
| True |
| False |
| Q6.In case of any conflict between the Principles of Fair Valuation and AMC's Valuation Guidelines, ___. |
| The Valuation Guidelines will prevail |
| The Principles of Fair Valuation will prevail |
| Both are the same so there will never be a conflict |
| SEBI will decide which is correct |
| Q7.Which of the following is an important aspect of an OFFER DOCUMENT? |
| To inform the investors about AMC's views on Stock Markets |
| To inform the investors of the performance of the scheme |
| To provide a comparison of the schemes |
| To inform the investors on the detailed information about the scheme |
| Q8.Prediction of equity markets in the short run is easier than in the long run - True or False? |
| True |
| False |
| Q9.Young Age, Good Steady Job, an Adventurous streak, etc are some qualities of an investor who takes risks in investments - True or False? |
| False |
| True |
| Q10.Which type of Hybrid Fund has the least exposure to equity? |
| Aggressive Hybrid Fund |
| Balanced Hybrid Fund |
| Conservative Hybrid Fund |
| Arbitrage Hybrid Fund |