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NISM Mutual Fund Exam Paper 1

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By admin January 25, 2017No CommentsPosted inNISM, NISM Mutual Fund, Stock Market

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NISM Mutual Fund Exam Paper 1

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NISM Mutual Fund - 1

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Question 1 of 100

1. Question
1 points
In the context of NPS portfolio allocation based on Investors age is known as
- Life Cycle Fund
- Wealth Cycle Fund
- Pension Fund
- Retirement Fund
Correct

Incorrect
Question 2 of 100

2. Question
1 points
The minimum holding period for capital gains to qualify as long term in the case of ETF-Gold scheme is
- 1 year
- 2 years
- 3 years
- 24 months and 1 day
Correct

Incorrect
Question 3 of 100

3. Question
1 points
Which of the following is incorrect?
- An equity fund would invest in Equity Shares of a company
- A bond fund would invest in Bond and Debentures
- A sector fund invests in the shares of companies in a particular industry
- An index fund is indexed to inflation index
Correct

Incorrect
Question 4 of 100

4. Question
1 points
An investor gives a cheque of Rs 2 lacs for investing in a 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
Correct

Incorrect
Question 5 of 100

5. Question
1 points
Mutual funds investing in money market instruments need to comply with
- SEBI requirements
- RBI requirements
- Both (a) and (b)
- Neither (a) nor (b)
Correct

Incorrect
Question 6 of 100

6. Question
1 points
Who is responsible for overall investments of the Fund
- Chief Investment Officer
- Fund Manager
- Securities Dealer
- Market Analyst
Correct

Incorrect
Question 7 of 100

7. Question
1 points
Risk appetite of investors is assessed through
- Risk Appetizers
- Asset Allocators
- Risk Profilers
- Financial Plan
Correct

Incorrect
Question 8 of 100

8. Question
1 points
Which website provides dedicated information regarding mutual funds?
- SEBI
- IRDA
- AMFI
- NISM
Correct

Incorrect
Question 9 of 100

9. Question
1 points
Which of the following is true?
- All mutual fund units need to be in physical form
- All mutual fund units need to be in demat form
- Investor has the option of choosing between physical and demat form
- Transaction in stock exchange only happens in physical units
Correct

Incorrect
Question 10 of 100

10. Question
1 points
In the mutual funds space, Tracking Error is a metric most often used in the context of ____________.
- International funds
- Index funds
- Fund-Of-funds
- Feeder funds
Correct

Incorrect
Question 11 of 100

11. Question
1 points
What does KRA stand for?
- Key Responsibility Area
- Knowledge Resource Advisor
- KYC Registration Agency
- Know your Registered Advisor
Correct

Incorrect
Question 12 of 100

12. Question
1 points
Average Return of an investors portfolio is 55%. The risk free return for the market is 8%. The Beta of the investors portfolio is 1.2. Calculate the Treynor Ratio.
- 41
- 39
- 43
- 45
Correct

Incorrect
Question 13 of 100

13. Question
1 points
Year-wise cash flows going several years into future is a feature of comprehensive financial plan
- TRUE
- FALSE
Correct

Incorrect
Question 14 of 100

14. Question
1 points
A Growth mutual fund would be expected to invest in
- High quality corporate bonds
- Equities
- commercial paper
- Real estate
Correct

Incorrect
Question 15 of 100

15. Question
1 points
NFOs other than ELSS can be open for a maximum of
- 7 days
- 10 days
- 15 days
- 30 days
Correct

Incorrect
Question 16 of 100

16. Question
1 points
Distribution phase of Wealth Cycle is a parallel of Retirement phase of Life Cycle
- TRUE
- FALSE
Correct

Incorrect
Question 17 of 100

17. Question
1 points
The Association of Mutual Funds has introduced KYD which is Known as ________
- Know Your Dividend
- Know Your Down Payment
- Know Your Distributor
- Know Your Dividend Payout
Correct

Incorrect
Question 18 of 100

18. Question
1 points
An investor looking for Capital Appreciation having a high risk tolerance and longterm horizon must invest in
- Bank FD
- Equity
- Bonds
- Debt Mutual Fund Schemes
Correct

Incorrect
Question 19 of 100

19. Question
1 points
The comparable for a liquid scheme is
- Equity scheme
- Balanced Scheme
- Gilt Fund
- Savings Bank account
Correct

Incorrect
Question 20 of 100

20. Question
1 points
Which of the following scheme need not be held for a minimum of 36 months in order to be treated as a Long Term Capital Asset?
- Floating Rate Funds
- Fixed Maturity Plans
- Income Funds
- Arbitrage Funds
Correct

Incorrect
Question 21 of 100

21. Question
1 points
The comparable for a liquid scheme is
- Equity scheme
- Balanced Scheme
- Gilt Fund
- Savings Bank account
Correct

Incorrect
Question 22 of 100

22. Question
1 points
Securities Transaction Tax is applicable to Debt Schemes
- TRUE
- FALSE
Correct

Incorrect
Question 23 of 100

23. Question
1 points
The Appropriate Benchmark for a Banking Fund
- BSE Tech
- BSE Small Cap
- BSE Bankex
- BSE 500
Correct

Incorrect
Question 24 of 100

24. Question
1 points
RGESS offers a rebate to first time retail investors in equity or mutual funds with annual income upto __________
- Rs 10 Lakhs
- Rs 15 Lakhs
- Rs 12 Lakhs
- Rs 8 Lakhs
Correct

Incorrect
Question 25 of 100

25. Question
1 points
The most appropriate measure of returns for a scheme in existence for several years is ______.
- Holding Period Return
- Absolute
- Annualised Return
- CAGR
Correct

Incorrect
Question 26 of 100

26. Question
1 points
Physical Health Influences Ideal Asset Allocation of an Investor?
- TRUE
- FALSE
Correct

Incorrect
Question 27 of 100

27. Question
1 points
The MF Regulations prescribe
- The Minimum Commission to the distributor
- The Maximum Commission to the distributor
- Both of the above
- Neither of the Above
Correct

Incorrect
Question 28 of 100

28. Question
1 points
A man nearing his retirement will be in
- Peak of his income
- Need to plan for his retirement
- Need not worry about retirement
- Plan for his vacation
Correct

Incorrect
Question 29 of 100

29. Question
1 points
An investor in a debt-oriented mutual fund scheme
- Would not bear any STT
- Would not bear a tax on short term capital gains as per the tax slab
- Would not bear a tax on long term capital gains
- All of the above
Correct

Incorrect
Question 30 of 100

30. Question
1 points
What does EUIN stand for?
- Employee Union Identification Number
- Employee Unique Identification Number
- Employer Unique Identification Number
- Employer Unique Ideal Number
Correct

Incorrect
Question 31 of 100

31. Question
1 points
Purchase transaction in Equity Scheme for Rs 1 crore at 11 AM
- Same Day NAV
- Next Business Day NAV
- NAV of Fund Realization day
- Investor cannot invest Rs 1 Crore in a single day
Correct

Incorrect
Question 32 of 100

32. Question
1 points
Which one of the following is True with respect to Custodian
- Safe Keeping of a schemes assets
- Accepting and Delivering Securities for Trades done by Fund Manager
- Tracking Corporate benefits
- Custodian is different from Sponsor
- All of the above
Correct

Incorrect
Question 33 of 100

33. Question
1 points
A due diligence certificate does not certify that
- the draft offer document forwarded to SEBI is in accordance with SEBI regulations
- all legal requirements connected with launching of the scheme have been complied with
- disclosures made in the offer document are true, fair and adequate
- the AMC guarantees a good performance
Correct

Incorrect
Question 34 of 100

34. Question
1 points
TIER 1 account of New Pension Scheme is known as Pension Account
- TRUE
- FALSE
Correct

Incorrect
Question 35 of 100

35. Question
1 points
What is the contribution of sponsor to net worth of Asset Management Company?
- Maximum 40%
- Minimum 40%
- Maximum 75%
- Minimum 25%
Correct

Incorrect
Question 36 of 100

36. Question
1 points
An example of closed end fund
- Fixed Maturity Plan
- Monthly Income Plan
- Gilt Funds
- ELSS
Correct

Incorrect
Question 37 of 100

37. Question
1 points
Investors have bought 20 crore units of a mutual fund scheme at Rs 10 each.
An amount of Rs 140 crore, invested in equities, has appreciated by 10%.
The balance amount of Rs 60 crore, mobilized from investors, was placed in bank deposits.
Interest and dividend received by the scheme is Rs 8 crore,
Scheme expenses paid is Rs 4 crore, while a further expense of Rs 1 crore is payable.
Calculate NAV of the scheme?
- Rs 10.585
- Rs 10.85
- Rs 10.985
- Rs 11.85
Correct

Incorrect
Question 38 of 100

38. Question
1 points
An example of a derivative security is ______.
- Ordinary equity share of a company
- Gold Futures contract
- Both 2 and 3 above
Correct

Incorrect
Question 39 of 100

39. Question
1 points
An investor who decides to go overweight on equities is taking a
- tactical asset allocation call
- Strategic asset allocation
- Fixed asset allocation
Correct

Incorrect
Question 40 of 100

40. Question
1 points
Risk free return of the scheme is 5%, and standard deviation is 0.5. Return earned by the scheme is 7%. Sharpe Ratio is
- 40
- 4
- 2.5
- 35
Correct

Incorrect
Question 41 of 100

41. Question
1 points
A person who is better informed about markets is in a better position to take market risks, than someone who is ignorant about them.
- True
- FALSE
Correct

Incorrect
Question 42 of 100

42. Question
1 points
An investor asks you in what order he should list the following schemes, going from the scheme with the least risk to the one with the highest risk. 1)Balanced Fund 2)Index Fund 3)Liquid Fund 4)Pharma Fund
- 1,2,3,4
- 3,1,2,4
- 2,3,1,4
Correct

Incorrect
Question 43 of 100

43. Question
1 points
A Mutual fund can benefit from economics of scale because of
- Portfolio diversification
- Risk Reduction
- Large volume of trades
Correct

Incorrect
Question 44 of 100

44. Question
1 points
A systematic withdrawal plan is ideal for
- Investors with growth as the main investment objective
- Investors who wish to benefit from market fluctuations
- Investors who prefer a regular income stream
Correct

Incorrect
Question 45 of 100

45. Question
1 points
A technical analyst studies ___________.
- Share price trends
- Share trading volumes
- Both the above
Correct

Incorrect
Question 46 of 100

46. Question
1 points
Financial Planner is likely to offer advice on all except
- Loans
- Insurance
- Inheritance
- Choice of Best Car
Correct

Incorrect
Question 47 of 100

47. Question
1 points
Which of the below is a short-term capital asset?
- Units of Equity Mutual Fund held for a period exceeding one year
- Units of Mutual Fund held for a period less than or equal to one year
- units of Debt mutual fund held for a period exceeding three years
Correct

Incorrect
Question 48 of 100

48. Question
1 points
SEBI has mandated AMCs to put in place a due diligence process to regulate distributors if they have
- Presence in More than 20 locations
- AUM raised over Rs. 100 crore across industry in the non-institutional category but including high networth individuals (HNIs)
- Received Commission of over Rs. 1 Crore p.a. across industry
- All of the above
Correct

Incorrect
Question 49 of 100

49. Question
1 points
The assets of the mutual fund are held by
- AMC
- Trustees
- Custodian
- Registrar
Correct

Incorrect
Question 50 of 100

50. Question
1 points
Pictorial representation of risk in schemes offered by a Mutual Fund is known as______
- Fundometer
- Style Box
- Colour Code
- Riskometer
Correct

Incorrect
Question 51 of 100

51. Question
1 points
Trail commissions are linked to valuation of portfolio in the market
- TRUE
- FALSE
Correct

Incorrect
Question 52 of 100

52. Question
1 points
Generally, a portfolio that has 70% of its assets invested in stocks would be best suited for:
- An 18-year-old using the assets to pay for college expenses over the next 4 years.
- A 35-year-old investing for retirement.
- A 75-year-old investing for income and capital preservation.
- None of the above.
Correct

Incorrect
Question 53 of 100

53. Question
1 points
An index fund manager tries
- To beat the market by superior stock selection
- To beat the market by using Technical Analysis
- To beat the market by using asset allocation strategies
- None of these
Correct

Incorrect
Question 54 of 100

54. Question
1 points
Fundamental analysis is an evaluation of the strength of the company’s price-volume charts.
- TRUE
- FALSE
Correct

Incorrect
Question 55 of 100

55. Question
1 points
Consolidated Account Statement is a single account statement that consolidates financial transactions in all portfolios across Mutual Funds based on _________
- Folio Number
- Bank Account Number
- PAN
- KYC
Correct

Incorrect
Question 56 of 100

56. Question
1 points
NAV in a re-investment option comes down after payment of dividend
- TRUE
- FALSE
Correct

Incorrect
Question 57 of 100

57. Question
1 points
STP is a combination of SIP and SWP
- TRUE
- FALSE
Correct

Incorrect
Question 58 of 100

58. Question
1 points
Today’s costs can be translated into future requirement of funds using
- A = P X (1 + i)n
- A = P / (1 + i)n
- P = A n X (1 + i)
- P = A n X (1 + i)
Correct

Incorrect
Question 59 of 100

59. Question
1 points
On which website can you find the draft Scheme Information Document (SID) of mutual fund scheme(s) that will be launched in the future if approved?
- SEBI
- AMFI
- RBI
- Ministry of Finance
Correct

Incorrect
Question 60 of 100

60. Question
1 points
When expecting a fall in market price, fund managers can reduce the loss in portfolio value by?
- Speculating
- Not buying and selling shares at all for some days
- Using equity derivatives
- Borrowing from banks
Correct

Incorrect
Question 61 of 100

61. Question
1 points
A mutual fund which deploys its funds in short-term instruments such as Treasury bills, commercial paper, and Certificate of Deposits.
- REIT
- Equity mutual fund
- Money market mutual fund
- Gold ETF
Correct

Incorrect
Question 62 of 100

62. Question
1 points
An Investor redeemed units of Gold ETF 20 months after Investment.What is the tax treatment for the capital gains he got?
- Long Term Capital Gains taxed at 10% without Indexation or 20% with Indexation
- Short Term Capital Gains taxed at 15%
- Short term capital gains which will be added to the income of the investor and taxed as per investors tax slab
- Long term capital gains and is completely tax free.
Correct

Incorrect
Question 63 of 100

63. Question
1 points
Certificates of Deposits (CDs) are issued by
- Regional Rural Banks
- Corporate India
- Schedules commercial banks
- None of the above
Correct

Incorrect
Question 64 of 100

64. Question
1 points
If 75% of unit holders jointly decide; the services of the AMC can be terminated.
- TRUE
- FALSE
Correct

Incorrect
Question 65 of 100

65. Question
1 points
Higher the capital base, better the ability to financially take the downsides that come with risk
- TRUE
- FALSE
Correct

Incorrect
Question 66 of 100

66. Question
1 points
In case of a minor ,KYC is compulsory for Guardian.
- TRUE
- Option
Correct

Incorrect
Question 67 of 100

67. Question
1 points
Most investor service centre are offices of
- Trustees
- Registrar
- Fund Accountant
- Custodian
Correct

Incorrect
Question 68 of 100

68. Question
1 points
Who is the authority to issue ARN number ?
- AMFI
- SEBI
- AMC
- Trustee
Correct

Incorrect
Question 69 of 100

69. Question
1 points
NAV of a scheme is Rs 10 on Jan 1, 2006 and was Rs 11 after 10 months. What is the annualized return ?
- 0.11
- 12%
- 0.01
Correct

Incorrect
Question 70 of 100

70. Question
1 points
Equity Linked Savings Schemes and Rajiv Gandhi Equity Savings Schemes offer tax benefits to investors.
- True
- FALSE
Correct

Incorrect
Question 71 of 100

71. Question
1 points
Which of the following is NOT a characteristic of a balance fund?
- It is less risky than growth funds
- It is more risky than Bond funds
- It must invest in both equity and bonds in equal amount
- It provides both growth and income objectives
Correct

Incorrect
Question 72 of 100

72. Question
1 points
Dividend distribution tax is applicable at ___% on investors other than individuals and HUFs
- 0.125
- 0.25
- 30%
- 0.2
Correct

Incorrect
Question 73 of 100

73. Question
1 points
Commodities, as an asset class, include
- pepper
- copper
- gold and silver
- All of the above
Correct

Incorrect
Question 74 of 100

74. Question
1 points
AMFI Code of Ethics is meant for
- AMCs
- Distributors
- Investors in mutual funds
- All the above
Correct

Incorrect
Question 75 of 100

75. Question
1 points
Dividend distribution tax is applicable at ___% on investors other than individuals and HUFs in case of Debt and Liquid Schemes
- 0.125
- 0.25
- 30%
- 0.2
Correct

Incorrect
Question 76 of 100

76. Question
1 points
Who cannot invest in Mutual Fund in India?
- Army/Navy/Air Force
- Scientific and Industrial Research Organizations
- Universities and Educational Institutions
- None of the above
Correct

Incorrect
Question 77 of 100

77. Question
1 points
Statement of Account is to be sent to investors within ___ days of NFO closure
- 3
- 5
- 7
- 15
Correct

Incorrect
Question 78 of 100

78. Question
1 points
Constant amount offered for re-purchase at regular intervals is the concept of
- SIP
- Value investment
- SWP
- STP
Correct

Incorrect
Question 79 of 100

79. Question
1 points
Board of Trustees appoint Custodians for
- Making payment to bankers on behalf of the fund
- Selling units of a mutual fund
- Safekeeping of physical securities of the mutual fund or participating in any clearing system.
Correct

Incorrect
Question 80 of 100

80. Question
1 points
A hybrid fund is one that
- invests in both bonds and stocks
- has different loads for different classes of investors in the fund
- invests in derivative securities, as well as stocks.
- Invests in Gold
Correct

Incorrect
Question 81 of 100

81. Question
1 points
A company buying plant and machinery is buying
- Financial Assets
- Intangible assets
- Physical Assets
- All of the above
Correct

Incorrect
Question 82 of 100

82. Question
1 points
As per SEBI mandate the Minimum networth requirement for AMCs who wish to start operations has been increased to _______ since May 2014.
- 10 Cores
- 15 Crores
- 50 Crores
Correct

Incorrect
Question 83 of 100

83. Question
1 points
Strategic Asset Allocation is Based on Risk Profiling
- TRUE
- FALSE
- 35 Crores
Correct

Incorrect
Question 84 of 100

84. Question
1 points
The format of the KIM is decided by each fund
- TRUE
- FALSE
Correct

Incorrect
Question 85 of 100

85. Question
1 points
Investors in the _____________ should allot a higher proportion to Income Funds.
- Accumulation Phase
- Distribution Phase
- Inter generational transfer phase
- Sudden Wealth category
Correct

Incorrect
Question 86 of 100

86. Question
1 points
Appeal against SEBI ruling can be filed with
- Ministry of Finance
- SAT(Securities Appellate Tribunal)
- RBI
- SEBI ruling is the final.
Correct

Incorrect
Question 87 of 100

87. Question
1 points
At least TWO THIRD of trustees has to be independent.
- TRUE
- FALSE
Correct

Incorrect
Question 88 of 100

88. Question
1 points
Cash is accepted as a mode of payment for Mutual Fund Investments to the extent of _______
- Rs 10,000 per transaction
- Rs 50,000 Per Fund House Per Financial Year
- Rs 20,000 Per Fund House Per Financial Year
Correct

Incorrect
Question 89 of 100

89. Question
1 points
PAN Card is compulsory for all MF investments above Rs 50,000 including SIPs
- TRUE
- FALSE
Correct

Incorrect
Question 90 of 100

90. Question
1 points
Which of the following withrespect to STT is TRUE?
- STT is payable when investors purchase units of Equity Mutual Fund Units
- STT is payable when investors repurchase units of Equity Mutual Fund Units
- STT is payable when investors purchase units of Debt Mutual Fund Units
- STT is payable when investors repurchase units of Debt Mutual Fund Units
Correct

Incorrect
Question 91 of 100

91. Question
1 points
Which of the following schemes are exempt from paying DDT?
- Liquid Fund
- Gold ETF
- GILT Fund
- Equity Fund
Correct

Incorrect
Question 92 of 100

92. Question
1 points
Cut-off timing guidelines are not applicable for _____.
- NFOs
- International Funds
- Equity Mutual Funds
- Only A and B
Correct

Incorrect
Question 93 of 100

93. Question
1 points
Capital Protection Schemes aim to provide capital protection based on
- Bank Guarantee
- AMC Guarantee
- Investment in Securities with No Credit Risk
- Structure of the portfolio
Correct

Incorrect
Question 94 of 100

94. Question
1 points
Distributors can time stamp the applications at their office.
- TRUE
- FALSE
Correct

Incorrect
Question 95 of 100

95. Question
1 points
Which of the following does a fundamental analyst study?
- Company’s financials
- Company’s management
- Competitive position in industry
- All the above
Correct

Incorrect
Question 96 of 100

96. Question
1 points
An investor has sold his investments in a Debt Mutual Fund Scheme two years after buying the units. The profits he earns are classified as _________________.
- as short term capital gains
- as dividends
- Taxed at a rate of 10%
- as long term capital gains
Correct

Incorrect
Question 97 of 100

97. Question
1 points
PAN Card is not required for mutual fund investments below Rs 50,000 per mutual fund per financial year, where payment is in cash.
- TRUE
- FALSE
Correct

Incorrect
Question 98 of 100

98. Question
1 points
Sector funds are highly diversified funds
- TRUE
- FALSE
Correct

Incorrect
Question 99 of 100

99. Question
1 points
A significant benefit of open-end schemes is
- Low cost
- Better portfolio
- Superior returns
- Liquidity
Correct

Incorrect
Question 100 of 100

100. Question
1 points
Model portfolios are a waste of time for financial planners
- TRUE
- FALSE
Correct

Incorrect