nism v a mutual fund exam mock test 4

Created on February 15, 2024

NISM Mock Test 4

NISM V-A Mutual Fund Distributor Certification Exam - Online solve question answer banks with mock test practice 100+ question

1 / 23

Whose job is it to track the various corporate actions like bonus, dividend, or rights issues in companies where the mutual fund scheme has invested?

Registrar and Transfer Agency

Custodian

Auditors of the Asset Management Company

Unitholders

2 / 23

“Please read the scheme related documents carefully” – which documents does this line refer to?

Scheme Information Document and audited balance sheet of the Asset Management Company

Trust deed and Key Information Memorandum

Statement of Additional Information and fund fact sheet

Scheme Information Document and Statement of Additional Information

3 / 23

Which of the following is an advantage of mutual funds?

Customized portfolio

Convenience to buy stocks and bonds directly from the mutual fund

Economics of scale

4 / 23

Which of the following statements is ‘True’ with respect to celebrity endorsement for mutual funds?

SEBI has permitted celebrity endorsement at the industry level for the purpose of increasing the awareness of mutual funds

SEBI has permitted celebrity endorsements for promotion of individual mutual fund schemes

Celebrities can endorse only NFOs

Celebrities can endorse only on-going mutual fund schemes

5 / 23

Which of the following regulates mutual funds in India?

Securities and Exchange Board of India

Association of Mutual Funds in India

Asset Management Companies

Board of Trustees of mutual funds

6 / 23

Which among the following investment avenues does not offer income on a regular basis?

Real Estate

Physical Gold

Stocks

Debenture

7 / 23

Providing funds for a daughter’s marriage is an example of _______.

Goal oriented Financial Plan

Comprehensive Financial Plan

Financial Goal

None of the Above

8 / 23

What is real rate of return?

Return that the investor gets after payment of all expenses

Return that the investor gets after taxes

Return that the investor gets after adjusting the risks

Return that the investor gets after adjusting inflation

9 / 23

Only individuals are allowed to distribute mutual funds in India.

True

False

10 / 23

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

11 / 23

How often should the Key Information Memorandum (KIM) be updated?

(Page 105).

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

12 / 23

The purchasing power of currency changes on account of which of the following?

Asset allocation

Compounded Interest

Inflation

Diversification

13 / 23

Investors have the right to specify upto ___ nominees for their mutual fund investment folios.

Zero

One

Two

Three

14 / 23

Who handles the day-to-day management of the mutual fund?

Asset Management Company

Registrar and Transfer Agency

Mutual Fund Trustees

Unitholders

15 / 23

Each mutual fund scheme must have a stated investment objective. State whether True or False.

True

False

16 / 23

When interest rate in the economy increases, the price of existing bonds ____.

Increases

Fluctuate

Decrease

17 / 23

Mutual funds can buy and sell securities only on delivery basis.

True

False

18 / 23

Which amongst the following categories of mutual funds have a fixed maturity date?

Open ended funds

Exchange traded Funds

Close ended funds

Interval Funds

19 / 23

Which of the following statements is ‘TRUE’ with respect to the Scheme Information Document (SID) and Statement of Additional Information (SAI)?

These two documents are prepared in the format prescribed by Association of Mutual Funds in India as part of AMFI’s Code of Conduct

These two documents are prepared in the format prescribed by Association of Mutual Funds in India as part of AMFI’s Best Practices Circular

These two documents are prepared in the format prescribed by Securities and Exchange Board of India

Each Asset Management Company is free to prepare these documents in the format they desire

20 / 23

_____ indicates how much money can be generated per unit of mutual fund in case the scheme is liquidated.

Asset Under Management

Net Asset Value

Market Price

Exit load

21 / 23

The transparency levels in mutual funds are very low. State whether True or False.

True

False

22 / 23

Mutual Fund Distributors Certification Examination offered by __________ is required for becoming a mutual fund distributor.

Securities and Exchange Board of India

National Institute of Securities Markets

Association of Mutual Funds in India

National Skills Development Corporation

23 / 23

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

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