Mutual Fund 700questions and Answers PDF
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NISM Mock Test 1 PRACTICE KIT – PAPER 1 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
A mutual fund distributor is paid commission for..
First - years of In$estment done by in$estor
First % years of In$estment done by in$estor
First 15 years of in$estment done by in$estor
As long as in$estor held the in$estment
D
2
The guid guideli eline ne issue issued d by AMFI AMFI for inte interme rmedia diarie ries s are know known n as... as...
A!I
A"#
AMFI
none of abo$e
A
%
The The in$e in$est stme ment nt in in MF por portf tfol olio io are are $al $alue ued d at
Face $alue of portfolio
cost of in$estment
Market $alue of portfolio
&ook $alue of portfolio
"
'
#(it #(it loads loads are genera generally lly lower lower for for larg large e in$es in$estor tors. s.
T)*#
FA+,#
-
Time Time stam stampi ping ng arra arrang ngem emen entt is is mus mustt at. at...
ffices of distributors
AM" offices
&ank distributor/s branch
ffices declared as point of acceptance.
D
0
,#&I ,#&I has put a stop stop on char chargin ging g to the the schem scheme. e.
#(it load
#ntry +oad
)ecurring #(penses
"D,"
&
*naudi *naudited ted accoun accounts ts of of the the sche scheme me must must be publis published hed
through monthly fact sheet
nly at AMFI website
nce e$ery si( month in one national = )egional news paper
nly on AM"/s website
"
3
"apital gain or loss from mutual fund in$estment are classified as a short term in$estment are if sold within
4 months
0 months
12 months
1% months
"
4
An in$estor in$ested in$ested )s.155555>in a %5 day FM: and and got )s. 15-5>?@ what is capital gain in this case
-5
-5
Insufficient details
15B :lus surcharge or 25B after inde( benefit
A
15
6hich of the following is true
,TT is payable when in$estor purchase e7uity MF
,TT is payable when in$estor does redemption from e7uity MF
,TT is payable when in$estor purchase debt MF
,TT is payable when in$estor sale debt MF
&
11
+i7uid funds can not charge management fees of funds parked in a short term bank deposits.
T)*#
FA+,#
12
,T T is charged on on
#7uity share trading
Deri$ati$es trading
#7uity MF
All of the abo$e
D
1%
6hich 6hich of the the follo followin wing g is not not re7ui re7uired r ed for for 89" 89" norms. norms.
:roof of in$estment
:roof of Identity
:roof of address
All of the abo$e
A
1'
The information on minimum in$estment amount@ in$estor/s ser$ice centers@ and how to make purchase is pro$ided in.
Application form
!omination Form
8IM
!one of the abo$e abo$e
"
1-
6hich of the following document is not re7uire to be submitted by charitable trust to in$est in MF
Trust deed
+ist of authori;ed signatories
&oard resolution and Memorandum and article of association
certificate of registration
"
10
,I: is a good good in$es in$estme tment nt stra strateg tegy y beca because use.. ..
In$estor gets units at a discount to !AC
It offers benefits of rupee cost a$eraging
It help helps s regul regular ar incom income e for in$est in$estor or
!o load load in$es in$estme tment nt done done
&
1
)ela(ation from documentation re7uirements for micro ,I: is a$ailable for..
#conomic turmoil
:olitical instability
All of the abo$e
&
5
6 ho Ap poi nt s t he AM "
"ustodian
)=T
Trustee
Distributors
"
1
6hic h of the following has lowest risk
+i7uid fund Hmmmf
ilt funds
Di$ersified debt fund
Di$ersified e7uity fund
A
2
+ong term capital gains in a debt fund without inde(ation for an in$estor is
15.55B
1-.55B
25.55B
!o ta(
A
%
6hat of the following is not a reason for in$estor to prefer mutual fund o$er &ank FD
Ta( benefits
:ossibility of capital gain
Deposit insurance
In$estment con$enience
"
'
In the !:, each in$estment manager appoints own distributor
T)*#
FA+,#
-
!eed of +ife insurance in life is
Must
!ot re7uired
0
All in$estor ha$e similar re7uirements at similar stage in the life>wealth cycle
T)*#
FA+,#
!ame of asset allocation strategy if it is fi(ed L -5 B
Tactical Allocation
,trategic Allocation
3
Model portfolio should be determined based on commission income possibility for distributor
T)*#
FA+,#
An agent in$ests his own money@ not that of client
A can be done without
!one of abo$e
A &
A=&
!one of abo$e
& &
NISM Mock Test 1 4
6hich of the following is true for model portfolio
,tipulated by ,#&I
uaranteed by AM"
Decided by financial planner
"ommon across industry
"
35
As the no of earning member in a family increases risk appetite
Increases
Decreases
,tays constant
!one of abo$e
A
31
#7uity in$estment through sip can be suggested for in$estor looking for
+ong term growth
,hort term target
:ortfolio churning
Ta( benefit
A
32
,tart CaluePH1> H:eriod ?1
!one of abo$e
"
41
The !AC of a fund is 1- applicable e(it load is 1B@ purchase !AC would be?
1'.3-
1-
1-.2-
1-.0-
&
42
In case of breach of "ode of conduct license is canceled by?
AMFI
,#&I
,ponsor
AM"
A
4%
6hich is true in case of ::F
:artial withdrawal facility is a$ailable after one year
In$estment = return are ta( free.
&oth
!one of the abo$e
&
4'
A fi(ed term plan series is?
As open ended fund
A closed ended fund
A fi(ed term bank deposit
A fi(ed term corporate bond
&
4-
The :># ratio is an important measure of a company/s anticipated performance. it is calculated using.
Market price and di$idend
Market price and earning per share
Market capitali;ation and di$idend
Market price and face $alue
&
NISM Mock Test 3 PRACTICE KIT – PAPER 3 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
6hich one of the following is not an eligible in$estor
Insurance "ompanies
o$t Institutions
Foreign "iti;ens
:ro$ident Fund
2
For a customer holding units in demat @ the AM" also re7uires to do his 89"
T)*#
FA+,#
%
6hich in$estment belo w gi$es international e(posure
International Funds
old Fund
!one
&oth
D
'
n doing risk profiling which asset allo cation does it gi$e
,trategic Asset Allocation
Fi(ed Asset Allocation
Fle(ible Asset Allocation
Tactical Asset Allocation
A
-
In a balance fund with net assets of -5 crores what is the e(penses that can be charged
15.1%
1-.%3
1.30
10.12-
D
0
I in$est )s -5 lacs at 2.%5 pm with a local che7ue for funds other than li7uid scheme@ which !AC will you get
!e(t day !AC
,ame days closing !AC
:re$ious day !AC
"losing !AC of the day preceding ne(t business day
&
6hat is the DDT for an indi$idual in li7uid fund
5.2-
5.2
5.1%
5.1
A
3
If client in$est in li7uid fund at 11.%5 am and the fund gets cleared on the same day which !AC the client gets
!e(t day !AC
"losing !AC of the day preceding ne(t business day
,ame days closing !AC
:re$ious days closing !AC
D
4
6hat is true about premium paid in a life insurance company
"ustomer can decide premium
:remium can be a$ailed under ,ec 35 c
:remium can be shown as e(p
:remium is $olatile
&
15
The person with whom the units are pledged is known as
:ledger
:ledgee
11
6hat is the highest e(pense ratio in a Fund of Fund scheme
2.2-B
1.-B
12
,#&I is sole regulatory authority for MF are answerable
T)*#
FA+,#
1%
n ?1
A U : > H1r P n
-
Appropriate benchmark for ?sec fund
I?sec I ?be(
")I,I+ li7uid fund inde(
MI&)
")I,I+ ? MI: bladed inde(
A
0
6hic h of the following has lowest risk
+i7uid Fund
I+T Fund
Di$ersified debt fund
Di$ersified #7uity fund
A
If I re7uire -55555 after 2 years@ which method will I follow
Discounting method with interest rate
Discounting method with inflation rate
"ompounding method with interest rate
"ompounding method with inflation rate
"
3
Mutual Fund ,ponsors can be compared to
Depositor of a company
"ompany director
:romoter of a company
"# of a company
"
4
6hich of the following can be charged to the scheme
,alary of Fund Administrati$es
ffice rent
eneral Administration #(penses
Fees of "ustodian
D
35
+ow :# compared with peer group or industry standard indicates that stock is cheap.
T)*#
FA+,#
31
6hat would be the redemption $alue of a *nit if !AC is 1- and #(it load is 1B
1-
1'.3-
1-.-
1-.1-
&
32
+ast step in the process of designing model portfolio
,ector ,election
Asset Allocation
,cheme selection
"lient ,election
"
3%
For a distribution channel@ 05B of the employees should ha$e AMFI )egistration !umber
T)*#
FA+,#
3'
#7uity Fund/s )isk relati$e to market is measured by
Tracking error
,harpe/s )atio
Treynor
&eta
D
3-
,tandar d )isk is
"ommon to all
*ncommon to all
,ystematic
,pecific to all
A
30
)e7uest of :urchase can be made
Along with re7uisite form and "he7ue
nly 6ith "he7ue
nly :urchase re7uisite form
&
A
&
A
NISM Mock Test 3 3
If an in$estor in$ests 1@555@555 at %%5 p.m through outstation che7ue@ he will get !AC of
,ame day closing !AC
6hen fund gets credited
:re$ious day closing !AC
!e(t Day !AC
33
+i7uidity risk is highest in
Mid "ap stocks
Front +ine ,tocks
Inde( ,tocks
ilt ,ecurity
A
34
Mr A total transaction $alue is )s. 1555 cr what is portfolio turno$er ratio
5.-
2
1
data insufficient
&
3
A$g net asset of scheme is %555@total transaction of a scheme 15@555 what is portfolio turno$er ratio
5.%
'
%.%%
-
"
33
6hat is an ideal sector allocation in a sectoral fund
-
W-
!ot more than 2
W15
"
34
6hich of the following is true with respect to the automatic rein$estment plan
It allows the in$estor to rein$est the amount of di$idend
It ensures that the in$estor reaps the benefit of compounding
,ome funds allow the in$estor the in$est the di$idend in the other schemes also
All of the abo$e.
D
45
6hich of the following is not true for #(change Traded Funds H#TF
#TF combines the best features of open end and closed end.
Its pricing is linked to the inde(
It offers the in$estors the benefit of fle(ibility of holding a single share as well as the di $ersification and cost efficiency of inde(
#TFs reco$er hea$y load from the in$estors.
D
41
In which of the following the in$estor generally bears the highest e(penses
#(change traded funds
&alanced funds
"ommodity funds
Fund of funds.
D
Inde( Fund
ilt edge ,ecurity
& A & A
&
& A
NISM Mock Test 4 42
6hich of the following is not the ad$antage of mutual funds
)eduction of transaction costs
"on$enience and fle(ibility
Tailor made portfolio
+i7uidity.
"
4%
In$estor who wants long term e(posure to gold should opt for
#TF old
old ,ector Fund
old Future
Jewellery/s
A
4'
6hich is the short term o$t ,ecurity
"ommercial :aper
T?&ills
"ertificate of Deposit
ilt
&
4-
6hich is the most Illi7uid Asset
old
#7uity
Debt
)eal state
D
NISM Mock Test 5 PRACTICE KIT – PAPER 5 No.
QUESTION
OPTION A
OPTION B
OPTION C
OPTION D
Answer
1
&ank lends against
:ledged units
Di$idend
!omination
)edemption
A
2
,ID is appro$ed by
In$estor
,ponsor
AM" and Trustee
"ustodian
"
%
"ut?off time for !AC
decided by AM"
same for all scheme
by trustee
:rescribed by ,#&I
D
'
preparation of 6I++ is pessimistic e(ercise@ so it is better to a$oid
T)*#
FA+,#
-
6hich document is not re7uir ed for institutional in$estor
: = + account
Memorandum of the articles of association
:A! card
Authori;ed signatory list
A
0
Distributors are pro$ided commission for up to
% yrs
- yrs
15 yrs
in$estors stay in$ested
D
,#&I is responsible to de$elop a cadre of well trained agents and distributors
T)*#
FA+,#
&
3
H15.5-O%
"
12
For an Micro ,I: which one of the following is not a $alid photo ID proof
:A! proof
Debit card with photo ID
"redit card with :hoto ID
Coter ID proof
"
1%
The responsiblity to manage funds in the new pension scheme is with
:F)DA
Insurance "ompanies
AM"s
:FMs
D
1'
6here you get the information in regards to the key personals in$ol$ed in an AM"
They are not published as it is not $ery important for the in$estor
They are published on the website of the mutual Fund
A$ailable in ,AI H ,tatement of Additonal Information
1-
6hich of the following is not a$ailable in ,ID
Type of Fund
)isk Factor
Due Diligence certificate
10
+egally ,AI is the part of ,ID
T)*#
FA+,#
1
The date of the applicablity of the !AC is not dependent on
Time at which the application is submiited
b ,cheme in which the money is in$ested
155555OH15.5-O%
Answer
" !one of the abo$e
D A
The day on which the application is submiited
The amount which is getting in$ested
"
NISM Mock Test 7 13
The AMFI allots uni7ue the A)! no which is $alid for the period of three years
T)*#
FA+,#
14
The following would not affect the trail commission to the ad$isor in mutual Fund
:ortfolio $alue going up with the increase in the market
In$estor making fresh purchase during the period
"hange in the unit capital of the the scheme
In$estor redeeming the money during the period
"
25
The ,TT paid on the e7uity mutual fund sold on the stock e(change is
5.5512-
!il
5.552-
5.5551
A
21
The ,TT paid on th e7uity mutual fund purchased on the stock e(change is
5.5512-
!il
5.552-
5.5551
A
22
,TT paid on the re purchase of units by the AM"
5.5512-
!il
5.552-
5.5551
"
2%
6hich of the following when transacted on the stock e(change ,TT is not applicable
#+,,
+D #TF
Inde( #TF
Di$ersified #7uity Fund
&
2'
Its is ad$isable for an a$erage in$estor to do T actical Asset allocation for planning his retirement
T)*#
FA+,#
2-
In case of sudden wealth which among the following is least ad$isable
:ark the money in the li7uid fund for a short time
In$est all money into e7uity at one go
20
Tactical asset allocation is suitable for seasoned in$estor with large in$estible surpluses
T)*#
FA+,#
2
An application for re purchase in e7uity comes at %.%5. 6hat would be the applicable !AC
"losing !AC of !e(t &usiness Day
"losing !AC of the Application Day
23
In case there is a redemption from a !)I who ha$e in$ested the money on a non repatriable basis. The mutual would pay in dollors as redemption
T)*#
FA+,#
&
24
The in$estment grow faster in di$idend re in$estment options as compared to the growth option because more units are added on di$idend rein$est
T)*#
FA+,#
&
%5
Ma(imum e(pense that can we charged in a debt fund is
5.51-
b 5.-B
5.52-
5.522-
D
%1
In case of the growth option which of the following is not true
The !AC capture the full $alue of the porfolio gain
There is no di$idend declared
The number of units increases o$er period
There is a Ta( Deffereal
"
%2
6e re7uire the board resolution from companies to in$est is mutual fund as it may not be specified in the Memorundum and Articale of Assoiation to in$est in such schemes
T)*#
FA+,#
%%
If the company ha$e 15 cores if Issued shares. The profit it makes is 15- coree. IT pays - crore as ta(. Also pays 25 crore as di$idend what is the #:,
15
3
%'
An in$estor in the debt scheme who completely want to eliminate in$estment in e7uity should in$est in MI:
T)*#
FA+,#
%-
The fund ha$e an a$erage asset of %55 crore. The portfolio turno$er for the portfolio is )s 1555 crore. For how many months the in$estment are held for
5.%0
%.0
%0
The floating rate fund hold on to there $alue e$en if the interest rate are fluctuating
T)*#
FA+,#
%
:erformance of the fund is most sensiti$e to the e(pense ratio in which of the following Fund
+i7uid Fund
Di$ersified #7uity Fund
A
& ,tart ,T: from li7uid fund into #7uity Funds
)e$iew the financial plan
& A
"losing !AC of the day preceeding the ne(t business day
"losing !AC of the day preceeding the Application date
A
&
!ot sufficient Data
-
A
&
%
5.2-
&
A #TF
,ector Fund
A
NISM Mock Test 7 %3
6ho among the following are not distributor for Mutual Funds
!ational Distributors
&ranches of public ,ector &ank
&ranches of reser$e bank of India
%4
Importance of credit rating agency is most important in
#7uity Funds
,ecutised Debt
#TF
'5
Full form of A!I
AMFI gudieline and !orms for Intermidiary
AMFI guideline and norms for In$estment
AMFI guideline for Asset Management "ompany
AMFI uideline for !on Indians
A
'1
6hich of the following scheme is e(empted from the di$ident distribution Ta(
Debt riented Funds
&alance Funds
+i7uid Funds
#7uity Funds
D
'2
,ector selection is the key decision in the &ottom *p Apprach
T)*#
FA+,#
'%
Illi7uid ,hares would be $alued at
Calue Decided by the br oker
Fair market $alue as the the guidelines of ,#&I
''
Ta( consultant should not ad$ice financial planning to his client
T)*#
FA+,#
'-
M ot he r w an t t o s et ap ar t ) s 2- la kh s i n % ye ar s t im e
F in an ci al o al
As se t A l oc at ion
F in an ci al :l an ni ng
F ina nc ia l D esi re
A
'0
Followinf is the Asset Allocation
Di$idend payout and rowth ption
Art and old Fund
rowth and Calue Fund
Acti$e fund and :assi$e Fund
&
'
+imit of the commission to be paid to distributor is decided by ,#&I
T)*#
FA+,#
'3
6hats is an !F In$estments
In$estment done by any in$estor in the new ,cheme
Additonal :urchase by the e(isting in$estor
First time in$estment in any of the mutual Fund ,cheme
Additional :urhase by the e(isting in$estot in another scheme
A
'4
6 hats is true about the FM:
!AC dose fluctuate
!o defaul In$ol$e
)eturns can be reasonably predicted before the maturity
All of the abo$e
"
-5
,AI needs to be updated e$ery
9early
Monthly
Nuarterly
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